Mexico Ratifies New North American Free Trade Deal
Mexico has completed its domestic ratification procedures in respect of the new US-Mexico-Canada Agreement (USMCA), which will replace the North American Free Trade Agreement, with the US and Canada.
A decree, signed by Mexican President Andrés Manuel López Obrador, was published in the nation's Official Gazette on July 29, 2019, making Mexico the first of the three signatories to endorse the deal's entry into effect. The Mexican senate endorsed the trade deal on June 19.
The new trade deal was signed on November 30, 2018, to replace NAFTA, which has been in force since 1994.
USMCA maintains the tariff-free market access from NAFTA and also introduces a range of new market access and tariff requirements for agricultural products.
USMCA also includes a new Customs Administration and Trade Facilitation chapter, which standardizes and modernizes customs procedures throughout North America. It preserves the use of binational panels to resolve disputes on countervailing and anti-dumping matters and preserves the state-to-state dispute settlement process of the original agreement.
Canada has secured a commitment from the US to provide at least a 60-day exemption from any future measures under Section 232, which authorizes the US President to impose tariffs in the case of imports deemed to constitute a national security threat.
The regional market has a combined GDP of more than USD22 trillion and contains nearly 486 million consumers.
Source: Pride Partners International