T-Mec Agreement

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On December 12, 2019, the Mexican Senate adopted the revised treaty by 107 votes to 1. [89] On April 3, 2020, Mexico announced that it was ready to implement the agreement and join Canada,[15] although it requested that its automotive industry have additional time to comply with the agreement. [90] In 1994, the United States, Mexico and Canada created the world`s largest free trade region with NAFTA, which generated economic growth and contributed to raising the standard of living of the population in all three member countries. By strengthening trade and investment rules and procedures, this agreement has proven to be a solid foundation for building Canada`s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. The new agreement between Canada, the United States and Mexico will serve to strengthen Canada`s strong economic ties with the United States and Mexico. The agreement is referred to differently by each signatory – in the United States, it is called the Agreement between the United States, Mexico and Canada (USMCA). [1] [23] In Canada, it is officially known as the Canada-United States-Mexico Agreement (CUSMA) in English[24] and the Canada-United States-Mexico Agreement (CUSMA) in French; [25] and in Mexico, tratado entre México, Estados Unidos y Canadá (T-MEC) is called. [26] [27] The agreement is sometimes referred to as «New NAFTA»[28][29], in line with the previous trilateral agreement intended to replace it, the North American Free Trade Agreement (NAFTA). The USMCA is expected to have very little impact on the economy. [108] An International Monetary Fund (IMF) working paper released in late March 2019 established that the agreement would have a «negligible» impact on the economy as a whole. [108] [113] According to the IMF study, the USMCA «would affect trade in the automotive, textile, and apparel sectors, while generating modest overall gains in welfare, fueled primarily by improved market access for goods with negligible effects on real GDP.» [113] The IMF study found that the economic benefits of the USMCA would be significantly increased if there was an end to Trump`s trade war (i.e., if the U.S. . .

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