Washington, D.C., January 29, 2020 – The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, welcomes today’s signing of the United States-Mexico-Canada Agreement (USMCA) trade agreement, updating the North American Free Trade Agreement (NAFTA). Over 12 million American jobs depend on trade with Canada and Mexico, so USMCA is an important agreement for U.S. industry for future economic growth.
“The agreement contains several provisions modernizing the original NAFTA, creating new opportunities for American companies and consumers,” said USCIB President and CEO Peter Robinson. “However, USMCA also leaves room for improvement for future negotiations, so we look forward to continued dialogue with the Administration on ensuring critical protections will be upheld in future agreements.”
- Digital Trade: USMCA contains a state of the art digital trade chapter, including prohibiting cross-border data flow restrictions and data localization requirements, prohibiting requirements for source code or algorithm disclosure or transfer as a condition for market access, prohibiting customs duties on electronic transmissions, provisions on consumer protection, privacy, cybersecurity and open government data. This new chapter allows companies to more effectively operate in the modern global economy.
- Customs and Trade Facilitation: USMCA significantly updates the customs and trade facilitation provisions from the original NAFTA, ensuring that goods can efficiently flow in and out of the United States. The parties agreed on provisions related to trade facilitation, including the creation of a single-access window system and expedited customs procedures for express shipments. The agreement also includes commitments from Canada and Mexico to increase their de minimis levels, moving toward leveling the playing field for American companies.
- Labor provisions: The original NAFTA was the first FTA to include labor provisions, though they were contained in side letters. USCMA brings the labor chapter into the agreement’s body, introduces strengthened labor provisions and makes them enforceable. The provisions require adherence to core labor standards of the International Labor Organization (ILO) and effective enforcement of national labor laws.
- IP protections: USMCA contains important provisions protecting the intellectual property rights (IPR) of American companies, including protections on patents, copyright, trademarks and trade secrets, which are important for the ability of American companies to continue to innovate. One major omission, however, is the opportunity to fully protect biologics. The removal of increased market exclusivity of biologics in the final agreement is detrimental to American companies and consumers.
- Investment: Protections for American companies when investing in Canada or Mexico are vital to ensure continued growth and development. USMCA contains such protections for many sectors, however does not fully protect all American companies across the board by significantly limiting access to the dispute settlement mechanism. In addition, even the limited dispute settlement mechanism is only available with Mexico, so for investment disputes with Canada, American investors have to rely on mechanisms outside of the newly negotiated agreement. Picking winners and losers for investment protection is not an appropriate precedent for U.S. FTAs going forward.
USCIB looks forward to entry into force and effective implementation of this important trade deal for U.S. business, and increased trade opportunities for our members.
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (known as BIAC), USCIB helps to provide business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.
|Kira Yevtukhova, USCIB
|Glen Brandow, USCIB