America Mexico Canada Trade Agreement
The America Mexico Canada Trade Agreement (AMCA) is the newest trade agreement in North America, replacing the North American Free Trade Agreement (NAFTA). The AMCA is a modernized trade agreement, built to reflect the changing economic and technological landscape of the 21st century. It was signed on November 30, 2018, and entered into force on July 1, 2020.
The AMCA aims to create a free trade zone across North America by addressing issues related to digital trade, intellectual property rights, and labor and environmental standards. It also includes measures to promote the growth of small and medium-sized enterprises (SMEs) and to provide greater access to government procurement contracts.
The AMCA includes several key provisions that seek to strengthen the North American economy. One of the most significant changes is the increase in the percentage of automobile parts that must be made in North America to qualify for duty-free treatment. The AMCA also requires that a percentage of automobile production be done by workers earning at least $16 per hour. These changes are designed to incentivize production within North America and to support higher wages for workers in the automotive industry.
The AMCA also includes provisions to protect intellectual property rights, such as copyrights, trademarks, and patents. These provisions will help to ensure that North American businesses can compete on a level playing field in the global marketplace.
Another significant change in the AMCA is the increased focus on digital trade. The agreement includes provisions to prevent data localization requirements and to prohibit customs duties on digital products such as music and e-books. This will help to promote innovation and the growth of the digital economy in North America.
The AMCA also includes provisions to strengthen labor and environmental standards. For example, it requires Mexico to pass and enforce labor laws that allow workers to form unions and bargain for better wages and working conditions. The agreement also includes provisions to protect the environment by setting standards for air and water quality and by prohibiting the trade in endangered species and timber from illegally harvested trees.
Overall, the America Mexico Canada Trade Agreement represents an important step forward for North American trade relations. By modernizing the previous agreement and addressing emerging issues such as digital trade, intellectual property, and labor and environmental standards, the AMCA will help to promote economic growth and prosperity across the region.
