In June 2018, with a full renegotiation of the NAFTA, Donald Trump had yet not hesitated to introduce customs duties punitive damages on the aluminum canadian.
The new version of the agreement on free trade in north america officially came into force on Wednesday. To mark the first day of the Agreement United States–Canada–Mexico (ACEUM), the u.s. Commerce secretary, Robert Lighthizer, has issued a statement marking the coup and pledging that the rules and obligations of the treaty will be respected. In his declaration, Mr. Lighthizer celebrates the ACEUM as an accomplishment of president Donald Trump, and a “change monumental” for the benefit of american workers and agricultural producers rather than to the advantage of multinational corporations.
According to the ambassador of Canada to the United States, Kirsten Hillman, who has played a major role in the negotiations, the ACEUM has been designed with the aim that more people in each of the three member States took advantage of its benefits. In the previous version, known by the acronym NAFTA, the main shortcoming reported to Us was an imbalance of benefits. It was alleged that the agreement to be the main responsible of the relocation of us factories to Mexico.
The new agreement provides the more binding provisions in the field of employment which require a larger part of the production is carried out by well-paid workers so that the product can circulate freely. “A major component of this approach was to provide an incentive to automakers in north america. And it was mostly to reposition our workers on the same playing field as our competitors in north america, ” said Ms. Hillman in an interview with The canadian Press.
“As a country where wages are high, we wanted to ensure that our workers can fight with equal weapons. So, I believe that the theme of the agreement is reflected by the trade for all Canadians, ” summarized the ambassador.
Not only the ACEUM takes effect in a particular context, at a time when the borders between the three countries are partially closed because of pandemic COVID-19, but it is still far to eliminate all areas of friction between the three partners, whose economies have become interdependent over time. “It looks more like a temporary truce with the government to Trump that of a return to the stability of the north american business,” says Edward Alden, an expert in international trade at the Council on Foreign Relations. And trade tensions may resume at any time with an american president returned to campaign for his re-election in November.
On 17 June, the us Trade representative (USTR), Robert Lighthizer, who himself negotiated the ACEUM, had also warned, in front of the Congress, that the government Trump was willing to take measures as “often” as necessary to challenge any violations of the new agreement. Its teams will closely monitor the issue of trade in dairy products, the longstanding dispute between farmers in the u.s. and canada. Robert Lighthizer added on Wednesday, saying that ” now, more than ever, the United States must stop the outsourcing of jobs and to increase their capacity of production and investment here at home “.
It looks more like a temporary truce with the government to Trump that of a return to stability
— Edward Alden
The ACEUM, obtained after a standoff diplomatic, ratified the end of 2019, replaces the NAFTA, which dated back to 1994 and who was unanimously considered obsolete. The final version of the treaty had been ratified, after numerous amendments, under the impetus of the us democrats.
Tensions around the aluminum
“With the new NAFTA, we have been able to protect our cultural industries in the digital age, and, for the future, we could ensure better protection for our car industry “, said Monday the prime minister, Justin Trudeau, during his daily press briefings. He also delighted in the fact that his government had ” failed to protect the privileged access that thousands and thousands of canadian businesses and millions of Canadians have the american market at a time of protectionism and uncertainty about the world trade “.
The prime minister also referred to the rumors that Donald Trump could réimposer of customs duties on aluminum canadian. “Actually, we hear of proposals of concern in relation to rates the potential on the aluminum. “But it has been argued that the United States did not have enough production capacity and were in need of aluminium canada for their automotive industries and high technology. In June 2018, with a full renegotiation of the NAFTA, Donald Trump had yet not hesitated to introduce customs duties punitive damages on the aluminum canadian, causing the astonishment of his ally history.
With The canadian Press
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