The new North American free trade agreement T-MEC will enter into force on July 1, the office of the United States Trade Representative (USTR) reported on Friday, who notified Congress that Canada and Mexico have taken the necessary measures for their implementation.
This new agreement replaces the North American Free Trade Agreement (NAFTA), which has regulated regional trade since 1994, but which the President of the United States, Donald Trump, considered disastrous for American interests.
“The entry into force of the T-MEC marks the beginning of a new landmark chapter for trade in North America,” the USTR said in a statement.
Trump imposed a renegotiation in August 2017 calling it the “worst trade deal in history” of the United States, and responsible for destroying employment in his country due to job relocation in search of cheap labor in Mexico.
The T-MEC negotiation process between the three countries was laborious and ended in November 2018.
Later, talks with the Democratic opposition in the United States lasted for more than a year, until the United States House of Representatives gave the green light to an amended text on December 19, and on January 16, 2020, the Senate gave its approval. good.
The original document was questioned by Democrats and by unions, who considered that Mexico would not comply with the labor commitments envisaged to avoid unfair competition.
In late January, the text was promulgated by Trump, who celebrated the end of a “nightmare.”
Mexico ratified the treaty in December 2019 and the Canadian legislature adopted it in March.
The T-MEC changes the rules of car manufacturing to incentivize employment in the United States and requires the implementation of better wages for Mexican workers, which required labor law reforms.
– “Significant improvements” –
“Under President Trump’s leadership, the USTR will continue to ensure a smooth implementation of the T-MEC so that American workers can enjoy the benefits of the new treaty,” said US Trade Representative Robert Lighthizer.
The US Trade Office said “the agreement contains significant improvements and modernized approaches,” citing access to agricultural markets, intellectual property, digital commerce, financial services and labor, among others.
“These improvements will create more jobs, provide more job protection, and expand access to markets, creating new opportunities for American workers, farmers, and farmers,” added the USTR.