USMCA countries must comply with IMF standards to avoid exchange rate manipulation. The agreement requires disclosure of market interventions. The IMF may be summoned as an arbitrator if the parties argue.  On June 1, 2020, USTR Robert Lighthizer released the uniform rules, which are the final hurdle before the agreement is implemented on July 1, 2020. On December 19, 2019, ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/uniform-regulations the U.S. House of Representatives passed the USMCA with multiparty support by 385 votes (democracy 193, Republican 192) to 41 (38 Democrats, Republicans 2, 1).  On January 16, 2020, the U.S. Senate passed the trade agreement by 89 votes (Democrats 38, Republicans 51) to 10 (Democracy 8, Republican 1, Independent 1) and the bill was forwarded to the White House for the signature of Donald Trump.  On January 29, 2020, Trump signed the agreement (Public Law No: 116-113).  NAFTA has been formally amended, but not the 1989 Canada-U.S. Free Trade Agreement, which is only “suspended.”   The USMCA is expected to have a very small impact on the economy.  An International Monetary Fund (IMF) discussion paper published at the end of March 2019 stated that the agreement would have a “negligible” impact on the general economy.  The IMF study predicted that the USMCA “would have a negative impact on trade in the automotive, textile and clothing sectors, while achieving modest welfare gains, mainly due to improved access to the goods market, with a negligible impact on real GDP.”  The IMF study found that the economic benefits of the USMCA would be greatly enhanced if Trump`s trade war ends (i.e., when the United States lowered tariffs on steel and aluminum imports from Canada and Mexico and Canada and Mexico lowered retaliatory duties on imports from the United States)  U.S. Customs and Border Protection (CBP) has created a USMCA centre to serve as a one-stop shop for information on the USMCA. The USMCA Center coordinates CBP`s implementation of the USMCA agreement and ensures a smooth transition through consistent and comprehensive guidelines for our internal and external stakeholders. The provisions of the Convention cover a wide range of agricultural products, homelessness, industrial products, working conditions and digital commerce. Among the most important aspects of the agreement are improving U.S. dairy farmers` access to the Canadian market, guidelines for a greater proportion of automobiles produced in the three countries and not imported from other countries, and maintaining the dispute settlement system, which is similar to that contained in NAFTA.   Fox News reported on December 9, 2019 that negotiators from the three countries reached an agreement on enforcement, paving the way for a final agreement within 24 hours and ratification by all three parties before the end of the year. Mexico has agreed to impose a minimum wage of $16 per hour for Mexican auto workers by a “neutral” third party. Mexico, which imports all of its aluminum, also objected to the provisions relating to the U.S. steel and aluminum content of automotive components.  To see the full text of the agreement between the United States, Mexico and Canada, click here.
This bill provides the legal authority for the U.S.-Mexico-Canada Trade Agreement (USMCA), which replaces the North American Free Trade Agreement. In particular, the bill implements provisions that include monitoring and enforcement of work and the environment, de minimis levels for the United States.