The agreement is designated differently by each signatory – in the United States, it is called the U.S.-Mexico-Canada Agreement (USMCA);   in Canada, it is officially known as the Canada-U.S.-Mexico Agreement (CUSMA) in English and the Canada-U.S.-Mexico Agreement (ACEUM) in French;  and in Mexico, tratado is called tratado between México, Estados Unidos y Canadé (T-MEC).   The agreement is sometimes referred to as “New NAFTA” with respect to the previous trilateral agreement for the successor, the North American Free Trade Agreement (NAFTA). In addition to the original NAFTA provisions, the USMCA borrows significant credits under the Trans-Pacific Partnership (TPP) trade agreements and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). On April 3, 2020, Mexico announced its willingness to implement the agreement and joined Canada.  The agreement came into force on July 1, 2020.     The U.S.-Mexico Agreement is based on the North American Free Trade Agreement (NAFTA), which originally came into force on January 1, 1994. The agreement under consideration was the result of more than a year of negotiations including possible U.S. tariffs on Canada, in addition to the possibility of separate bilateral agreements.  Manufacturing in Mexico accounts for 17% of GDP.  However, Mexican President Andrés Manuel Lupepez Obrador believes that this trade agreement will be a clear positive for the Mexican economy through increased foreign investment, job creation and the expansion of trade.  On June 19, 2019, the Mexican Senate ratified the agreement (114 yes, 3 no, 3 abstentions).  Mexico`s ratification process will be completed when the President announces its ratification to the Federal Register. An April 2019 Analysis by the International Trade Commission on the likely effects of the USMCA estimated that the agreement would increase U.S.
real GDP by 0.35 percent if the agreement were fully implemented (six years after ratification) and would increase total U.S. employment by 0.12% (176,000 jobs).   The analysis cited by another Congressional Research Service study showed that the agreement would not have a measurable effect on employment, wages or overall economic growth.  In the summer of 2019, Larry Kudlow, Trump`s chief economic adviser (the director of the National Economic Council at Trump White House), made unfounded statements about the likely economic impact of the agreement and overstated forecasts related to jobs and GDP growth.  In order to facilitate the marketing of food and agricultural products, Mexico and the United States agreed that the classification of standards and services for all agricultural products would not discriminate and will engage in a dialogue to address issues relating to classification and quality of trade. The FDA was an important member of the U.S. team that negotiated the U.S.-Mexico-Canada Agreement (USMCA), which came into effect on July 1 of this year. From the FDA`s perspective, the agreement adapts regulatory standards to public administration practices, improves the quality of products available to U.S. consumers and a level playing field for U.S.
companies. The parties agreed to establish important procedural safeguards for the recognition of new geographic indications (G.A.), including strong protection standards against the issuance of geographical indications that would prevent the use of common names by the United States, as well as the establishment of a mechanism for consultation between the parties on future geographical indications, in accordance with international agreements. Take advantage of U.S. farmers, ranchers and agricultural businesses by modernizing and strengthening food and agricultural trade in North America. The USMCA is off to a start, as the coronavirus plunged the three countries into deep recession and reduced their trade flows in April – typically about $1,200 billion a year – to their lowest monthly level in a decade.