Coronavirus Update: North American trade deal to take effect on July 1

The Trump administration notified Congress on Friday that the US-Mexico-Canada Agreement (USMCA) will take effect on July 1, bringing to an end to almost three-year-old North American Free Trade Agreement (NAFTA).

US Trade Representative (USTR) Robert Lighthizer, in a statement, said, "Canada and Mexico have taken measures necessary to comply with their commitments under the United States-Mexico-Canada Agreement (USMCA), and that the Agreement will enter into force on July 1, 2020."

"The crisis and recovery from the Covid-19 pandemic demonstrates that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America," Lighthizer said in the statement.

Following that notification to Congress, the United States became the third country to notify the other Parties that it had completed its domestic procedures to implement the agreement--the final step necessary for the USMCA to enter into force.

The USMCA's entry into force marks the beginning of a historic new chapter for North American trade by supporting more balanced, reciprocal trade, leading to freer markets, fairer trade, and robust economic growth in the region.

The agreement contains significant improvements and modernised approaches to rules of origin, agricultural market access, intellectual property, digital trade, financial services, labour, and numerous other sectors, the statement said.

These enhancements will deliver more jobs, provide stronger labor protections, and expand market access, creating new opportunities for American workers, farmers, and ranchers, it added.

The USMCA came into being as a result of Donald Trump demanding to re-negotiate the North American Free Trade Agreement (NAFTA), a pact signed in 1993 that the President repeatedly called a "disaster" for the United States.

Last month Canada ratified the agreement - the last of the three signatories to ratify the accord, which has already been approved by Mexico and the United States.

(ANI)

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