What Agreements Exist Between Canada And Mexico

Neither the worst fears of Canadian trade opponents – that open trade would erode the country`s manufacturing sector – nor the highest hopes of NAFTA proponents – that this would lead to a rapid increase in productivity – have been realized. Employment in Canada`s manufacturing sector has remained stable, but the productivity gap between the Canadian and U.S. economies has not been closed: until 2017, Canada`s labour productivity remained at 72% of the U.S. level. Other provisions have been introduced to settle disputes between investors and participating countries. Such rules allowed, among other things, companies or individual investors to sue against compensation from any signatory country that violated the rules of the treaty. The full text of the agreement between the United States, Mexico and Canada is available here. In addition to the construction of the existing NAFTA, merged with elements of the Trans-Pacific Partnership, the new USMCA, which has just been adopted by the U.S. Congress, also includes elements of the “Beyond the Border” agreement signed by Prime Minister Stephen Harper and former President Barack Obama, including the “Single Window” initiative and the consolidation of the Regulatory Cooperation Council in Chapter 28 of the new agreement. [50] In addition, in 2019, Canada received more than 27,000 agricultural workers under the Seasonal Agricultural Workers Program, often cited as a model for international occupational mobility agreements. Mexico is also Canada`s eleventh country of origin for international students in the world and the second largest in Latin America with about 20,000 Mexican students in Canada in 2018.

Academic and cultural ties are essential elements of our relationship. There is a considerable amount of ongoing cooperation and academic exchange. There are more than 300 companies between Canadian and Mexican higher education institutions, which primarily facilitate university exchanges, as well as a number of insurance organizations between Canadian educational associations and Mexican government agencies. In early 2020, the U.S. Congress approved the USMCA with large bipartisan majorities in both chambers, and the agreement came into effect on July 1. Nevertheless, some critics have complained that the new rules of origin and minimum wage requirements are cumbersome and boil down to state-run exchanges. Alden of CFR was blood pressure and said that the government could recognize the restoration of cross-party cooperation in U.S. trade policy.

But he warns: “If this new mix of Trump nationalism and democratic progressivism is what it takes now to conclude trade agreements with the United States, there could be very few buyers.” Since NAFTA, trade between the United States and its North American neighbors has more than tripled and grown faster than U.S. trade with the rest of the world. Canada and Mexico are the top two destinations for U.S. exports, with a share of more than one-third. Most estimates conclude that the agreement has increased U.S. gross domestic product (GDP) by less than 0.5%, which equates to an additional $80 billion over the U.S. economy, with full implementation or several billion dollars of additional growth per year.