This actually looks surprisingly good for all parts, at a first glance.
New name. Goodbye NAFTA. The new deal will be known as the United States-Mexico-Canada Agreement, or USMCA. Trump, who had long disdained NAFTA, had suggested that he might call it the “USMC,” in honor of the U.S. Marine Corps, but in the end, USMCA won out.
Dumb and pointless, but no big deal.
Big changes for cars. The goal of the new deal is to have more cars and truck parts made in North America. Starting in 2020, to qualify for zero tariffs, a car or truck must have 75 percent of its components manufactured in Canada, Mexico or the United States, a substantial boost from the current 62.5 percent requirement.
Slightly more jobs, but cars will be slightly more expensive because of this. At least it benefits/hurts all three nations equally.
There’s also a new rule that a significant percentage of the work done on the car must be completed by workers earning at least $16 an hour, or about three times what the typical Mexican autoworker makes.
While the goal of this might very well be to make Mexican factories less competitive, the biggest winners here are workers.
Canada is keeping most of its complex system in place, but it is giving greater market share to U.S. dairy farmers. U.S. negotiators say they got a major victory by forcing Canada to eliminate the pricing scheme for what are known as Class 7 dairy products. That means U.S. dairy farmers can probably send a lot more milk protein concentrate, skim milk powder and infant formula to Canada (and those products are relatively easy to transport and store).
This will hurt a bit for Canadian dairy farmers, but doesn't sound like a huge deal.
Canada’s victory: Chapter 19, allowing for a special dispute process, stays intact. Canadian Prime Minister Justin Trudeau said repeatedly that he wanted to keep Chapter 19 in place, and that’s exactly what happened. The U.S. side pushed hard to eliminate this chapter, but in the end, it stayed.
I'm not too familiar with this, but it sounds like a good thing.
The USMCA makes a number of significant upgrades to environmental and labor regulations, especially regarding Mexico. For example, the USMCA stipulates that Mexican trucks that cross the border into the United States must meet higher safety regulations and that Mexican workers must have more ability to organize and form unions.
Wait, what? A Republican administration has negotiated a treaty that is good for the environment and encourages unionising? Did I accidentally stumble through a portal to Bizarro World?
The new IP chapter is 63 pages and contains more-stringent protections for patents and trademarks, including for biotech, financial services and even domain names.
Can't really comment on this, but as the article mentions, a lot has changed in 25 years, so it might be overdue.
U.S. drug companies will now be able to sell pharmaceuticals in Canada for 10 years before facing generic competition. That’s up from eight years of so-called “market protection” now.
Good for business, bad for sick people, but overall not a very big deal.
Chapter 11, giving investors a special way to fight government decisions, is (mostly) gone. Chapter 11 is eliminated entirely for Canada and mostly for Mexico, except for some key industries such as energy and telecommunications.
I don't really know enough about this to comment on it.
One interesting thing to me about this new deal are the superficial similarities to TPP, including the parts about intellectual property, and the parts about minimum wages for some workers. Yet more proof that the only reason to withdraw from the TPP was because Obama wanted to stay in it.