The agreement between the United States, Mexico and Canada is based on the North American Free Trade Agreement (NAFTA), which entered into force on January 1, 1994. This Agreement has been the result of more than a year of negotiations, including possible U.S. tariffs against Canada and the possibility of separate bilateral agreements.  USMCA countries must comply with IMF standards to prevent exchange rate manipulation. The agreement provides for the disclosure of market interventions. The IMF may be convened as an arbitrator in the event of a dispute between the parties.  Sectoral chapters, including Chapter 12, relating to FDA-regulated products, were not included in most previous trade agreements, including NAFTA. Therefore, the inclusion of these annexes by the USMCA is an innovation not only in U.S. trade policy, but also for international public health. Under the leadership of President Donald J. Trump, the United States renegotiated the North American Free Trade Agreement and replaced it with an updated and rebalanced agreement that works much better for North America, the Agreement between the United States, Mexico and Canada (USMCA), which entered into force on July 1, 2020. The USMCA is a beneficial asset for both parties for North American workers, farmers, ranchers and businesses.
The agreement creates more balanced and reciprocal trade, which supports high-paying jobs for Americans and the North American economy is growing. There are three primary dispute settlement mechanisms that are included in NAFTA. Chapter 20 is the resolution mechanism from one country to another. It is often considered the least controversial of the three mechanisms and was maintained in the USMCA in its original NAFTA form. Such cases would involve complaints between USMCA member states for violation of a provision of the agreement.  Chapter 19 deals with the justification of anti-dumping or countervailing duties. Without Chapter 19, the remedy for the management of these policies would be through the national legal system. Chapter 19 provides that a USMCA body hears the case and acts as the international commercial court in mediating the dispute.  The Trump administration has attempted to remove Chapter 19 of the new USMCA text, although it has been maintained so far in the agreement. The provisions of the agreement cover a wide range of agricultural products, homelessness, manufactured goods, working conditions, digital trade and others.
Among the most important aspects of the agreement are better access for U.S. dairy farmers to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries instead of being imported from other countries, and the maintenance of the dispute settlement system, similar to that contained in NAFTA.   National procedures for ratifying the agreement in the United States are governed by the legislation of the Trade Promotion Authority, also known as the Fast Track Authority. The negotiations « mainly focused on car exports, tariffs on steel and aluminum, as well as the milk, egg and poultry markets. » One provision « prevents any party from legislating that restricts the cross-border flow of data. »  Compared to NAFTA, the USMCA raises environmental and labor standards and encourages increased domestic production of cars and trucks.  The agreement also provides updated intellectual property protection, allows the U.S. greater access to the Canadian dairy market, imposes a quota for Canadian and Mexican auto production, and increases duty-free for Canadians buying from the U.S. . . .