The new agreement, signed in November 2018, is described by Canadian government officials as a free trade agreement between Canada and the United States and Mexico, or abbreviated CUSMA, while U.S. President Donald Trump calls it the U.S.-Mexico-Canada agreement or USMCA. On November 30, 2018, the USMCA was signed as planned by the three parties at the G20 summit in Buenos Aires.   Disputes over labour rights, steel and aluminum prevented ratification of this version of the agreement.   Canadian Deputy Prime Minister Chrystia Freeland, U.S. Trade Representative Robert Lightizer, and Mexican Under-Secretary of State for North America Jesus Seade officially signed a revised agreement on December 10, 2019, ratified by the three countries on March 13, 2020. This video will give you an accurate overview of some of the differences between NAFTA and USMCA. The agreement is designated differently by each signatory – in the United States, it is called the U.S.-Mexico-Canada Agreement (USMCA);   in Canada, it is officially known as the Canada-U.S.-Mexico Agreement (CUSMA) in English and the Canada-U.S.-Mexico Agreement (ACEUM) in French;  and in Mexico, tratado is called tratado between México, Estados Unidos y Canadé (T-MEC).   The agreement is sometimes referred to as “New NAFTA” with respect to the previous trilateral agreement for the successor, the North American Free Trade Agreement (NAFTA). NAFTA has three primary dispute resolution mechanisms. Chapter 20 is the settlement mechanism for countries.
It is often considered the least controversial of the three mechanisms, and has been maintained in its original form from NAFTA to the USMCA. In such cases, complaints filed by USMCA Member States against the duration of the contract would be violated.  In Chapter 19, the justifications for anti-dumping or countervailing duties are managed. Without Chapter 19, the avenue of recourse for the management of these policies would be through the national legal system. Chapter 19 provides that an USMCA body hears the case and acts as an international commercial tribunal to arbitrate the dispute.  The Trump administration has attempted to remove Chapter 19 of the new USMCA text, which until now existed in the agreement. From June to the end of August 2018, Canada was sidelined due to bilateral discussions between the United States and Mexico.  On August 27, 2018, Mexico and the United States announced that they had reached a bilateral agreement on a revised NAFTA trade agreement, which includes provisions that would boost U.S.
auto production a 10-year data protection period against generic drug production on an expanded list of products enjoyed by pharmaceutical companies. , particularly U.S. manufacturers of high-quality bionological drugs. , a sunset clause – a 16-year expiry date with periodic audits over 6 years to eventually extend the contract for an additional 16 years, and a high de minimis threshold, where Mexico increased the de minimis value of US$50 in terms of duty-free and tax-free online purchases to $100.   According to an August 30 article in The Economist, Mexico has agreed to increase the rules of origin, which would mean that 75% of a vehicle`s components must be manufactured in North America, as opposed to the previous 62.5%, in order to avoid tariffs.  Given that automakers are currently importing cheaper components from Asia, consumers would pay more for vehicles under the revised agreement.  In addition, approximately 40 to 45 per cent of vehicle components must be produced by workers earning at least $16 an hour, as opposed to the current $2.30 per hour that a worker earns on average at a Mexican auto plant.   The Economist described this as a “Mexican car construction in a straitjacket”.
 In addition to the original NAFTA provisions, the USMCA borrows significant credits under the Trans-Pacific Partnership (TPP) trade agreements and the Trans-Pacific Partnership (CPTPP) Comprehensive and Progressive Agreement.