July 26,2019

The Benefits of USMCA

The Benefits of USMCA
 
Access to Markets
·        Preserves and enhances U.S. duty-free access to Mexican and Canadian markets.
Agriculture
·        Increases market access for U.S. farmers with new export opportunities for U.S. dairy, poultry and egg producers.
·        Addresses longstanding non-tariff barriers to the ability of U.S. producers to export wheat and wine to Canada.
·        Prevents trade barriers disguised as food safety and animal or plant health measures by requiring such measures to be based on sound science.
·        Improves the transparency and functioning of approval processes for biotech crops.
Auto Rules of Origin
·        New rules will increase U.S. jobs in automotive sector by incentivizing production in the United States and North America.
·        By encouraging companies to use more U.S. content and high wage labor, USMCA will help ensure that U.S producers and workers are able to compete on a level playing field.
Currency
·        Requires transparency on currency policies and addresses unfair currency practices.
Customs & Trade Facilitation
·        USMCA will help reduce red tape at the border, reduce costs, and increase predictability for cross-border transactions.
·        Raises the “de minimis” customs thresholds under which U.S. businesses may export to Canada and Mexico with reduced paperwork and without paying taxes or duties.
·        Requires making customs regulations available online.
Digital Trade
·        USMCA will be the first U.S. free trade agreement with a digital trade chapter, creating a strong foundation for the expansion of trade and investment in innovative digital products and services.
·        Prohibits the imposition of tariffs on digital products transmitted electronically.
Financial Services
·        Expands market access for U.S. business to export electronic payments services, investment advice, and portfolio management.
Good Governance
·        Encourages regulations to be written in plain language so that the public can better understand their meaning.
·        Requires most regulations to go through a notice and comment and procedure so the public can see and provide input on proposed regulations.
·        Requires criminal penalties for bribery and corruption, including with respect to interactions with foreign government officials.
Intellectual Property
·        Secures strong protections and enforcement of intellectual property rights to help drive innovation and create economic growth
·        Includes 10 years of regulatory data protection for biologic drugs
·        Continues to provide strong patent protection for innovators by enshrining patentability standards and patent office best practices.
·        Improved protections for trade secrets, including civil and criminal protections, guarantees on the ability to license trade secrets, and protection from unauthorized disclosure by courts and government officials.
Labor & Environment
·        Provides the strongest labor and environment obligations in any U.S. trade agreement and makes them fully subject to the enforcement and dispute settlement.
State-Owned Enterprises
·        Imposes market disciplines and prohibits discriminatory privileges and certain subsidies.
Textiles

·        Strengthens incentives to use North American fibers, yarns, and fabrics in textile products.