Last week the United States, Mexico, and Canada agreed to replace the North American Free Trade Agreement (NAFTA) with a new United States-Mexico-Canada Agreement (USMCA). Sadly, instead of replacing NAFTA’s managed trade with true free trade, the new USMCA expands government’s control over trade.
For example, under the USMCA’s “rules of origin,” at least 75 percent of a car’s parts must be from the US, Canada, or Mexico in order to avoid tariffs....
The USMCA also requires that 40 to 45 percent of an automobile’s content be made by workers earning at least 16 dollars per hour....
The USMCA also requires Mexico to pass legislation recognizing the “right of collective bargaining.” In other words, this so-called free trade agreement forces Mexico to import US-style compulsory unionism...
The USMCA also requires the three countries to abide by the International Labour Organization (ILO) standards for worker rights....
The USMCA also obligates the three countries to work together to improve air quality....
This agreement also forbids the use of currency devaluation as a means of attempting to gain a competitive advantage in international trade....
A true free trade deal would simply reduce or eliminate tariffs and other trade barriers. It would not dictate wages and labor standards, or require inter-governmental cooperation on environmental standards and monetary policy. A true free trade deal also would not, as the USMCA does, list acceptable names for types of cheeses....
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Originally Posted by Peter1469
