What’s new about the agreement that replaces NAFTA

The flags of Canada, the U.S. and Mexico are lit by stage lights before a news conference, Wednesday, Aug. 16, 2017, at the start of NAFTA renegotiations in Washington. (AP Photo/Jacquelyn Martin)

UNITED STATES (VOP TODAY NEWS) – US President Donald Trump announced the success of negotiations on a new trade deal with Canada and Mexico, which is to replace NAFTA, calling it “historic.”

Here is what is new in the agreement, which is supposed to replace NAFTA after it has been ratified in the three countries:

  • The name of the agreement has been changed from NAFTA to the United States, Mexico and Canada Agreement (USMCA).
  • The United States maintains tariffs announced by President Donald Trump imposed on steel and aluminum exports from Canada and Mexico.
  • No customs duties on importation of cars from Mexico and Canada as long as their sales do not exceed 2.6 million pieces annually.
  • The agreement aims to stimulate the automotive, truck and spare parts industry in the three countries. As of 2020, it will be necessary to have 75 percent of the components of cars manufactured in one of the three countries to exempt them from customs duties, which is currently 62.5 percent.
  • Under the agreement, new wages are required for workers in the automobile industry, where at least 30 percent of the work must be carried out by workers whose wages are not less than $ 16 per hour, while the wages of the majority of Mexican workers are lower Present. The measure is intended to support workers in the three countries, and the rate is expected to increase to 40 percent by 2023.
  • Canada made a concession to Washington and allowed American dairy producers more room in its market.
  • Modernize labor rules for workers and environmental requirements.
  • Intensify measures to protect intellectual property.
  • Facilities for American pharmaceutical manufacturers in the Canadian market for a period of 10 years.
  • The amendment of the chapter that was to determine the system of settling differences between companies and investors on the one hand and governments on the other.
  • Increased value of US duty-free purchases by Canada and Mexico.