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Multilateral groupings 3 (USMCA (Important Apects (Canada will open its…
Multilateral groupings 3
USMCA
USA: Why NAFTA unfair?
Mexico has lower wages and not stricter labour laws.
-Comparative cost of production is low, and these are being sold in USA==> Counterproductive to USA and job losses in USA
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Important Apects
Canada will open its dairy market further to
US producers
-Previous tarriffs of 275% will be taken away
In return U.S.A left unchanged the dispute
settlement provisions, which Canada quiteoften used to resolve the trade conflicts and
to defend against U.S anti-dumping andcountervailing duties
it includes stronger protections for workers,
tough new environmental rules.
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It adds provisions to prevent Hmanipulation"
of the trade rules, including coveringcurrency values, and controls over outside
countries trying to take advantage of the duty-free market.
If the US imposes a 25% global tariff on car
imports, Canada and Mexico have a quota of2.6 million cars they can export to the US as
a protection for their car industry.
In addition, 40% of the car parts of vehicles
produced in the three Countries must be made in North America.
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Way forward
In dealing with an emboldened Trump
Administration, India 's trade negotiators will now have their task cut out, if they want to protect
exporters' access to one of the Country's largest markets for its services as well as merchandise.