Agriculture. Dairy. Digital Trade. Intellectual Property. Several local industries are in for changes under USMCA. WCIT’s report on “The New NAFTA” analyzes the impact on Washington state. Now the important process of ratification begins. Work is underway in all three countries to examine the agreement and its benefits. For now, Washington state will need to rely on the existing NAFTA, which must remain in place until the new USMCA is ratified.
USMCA was agreed to by the U.S., Mexico, and Canada on October 1, 2018 and signed by representatives at the G20 Summit in Buenos Aires, Argentina on November 30. The deal must now be ratified by legislative bodies in each country including the U.S. Congress. The schedule for ratification in each country is uncertain at this time.1
Canada and Mexico are the United States’ second and third largest trading partners, after China. The North American economy is highly integrated and goods flow back and forth across the continent as part of complex supply chains before reaching market. The U.S. and Canada trade large amounts of vehicles, agricultural products, mineral fuels, and services. U.S. trade with Mexico is dominated by agricultural products and machinery, with Mexico importing U.S. corn, soybeans, dairy, meat, electrical machinery, and fuel while supplying the U.S. with fresh fruit, vegetables, beer, vehicles, and medical instruments.
To read the report published by the Washington Council on International Trade, click here.
Copyright © 2018 Washington Council on International Trade