It is known as T-MEC (Mexico-United States-Canada Treaty) created to replace the old North American Free Trade Agreement (TLCAN). This agreement will bring the three countries better investments while respecting their sovereignty.
First, chapters are added to the trade agreement. It is now composed of 34 chapters (before 22), where the additions and modifications to the chapters that constitute the T-MEC imply certain changes with respect to TLCAN.
The rules and disciplines that promote and strengthen cooperation and trade in goods between countries are discussed.
Some of the most important points of T-MEC are:
-It establishes rules that prohibit the application of export taxes, as well as more transparent import and export licensing procedures.
-Provisions are established to determine the requirements that a good must meet to consider it as “originating” in a country and thereby be entitled to the negotiated tariff preference.
-Measures were taken to facilitate trade. The three countries pledged to simplify customs processes.
-Measures were taken to avoid unnecessary obstacles when inspecting that the products exported by the three countries comply with the rules of the Treaty.
-Countries agreed that they will not impose tariffs on the trade of digital goods, such as computer programs, videos or audios, although taxes of another type that each country decides to establish in its territory to regulate digital commerce are allowed.
-Freedom of association for labor associations and the effective recognition of the right to collective bargaining is guaranteed, it is established that Mexico must provide a system that allows union elections to be free and secret.
– The member countries of the Treaty will have to develop tools to promote and grow small and medium-sized enterprises (PYMES).
This agreement is valid for 16 years, but will be subject to review every 6 years. This is different from what the United States had initially proposed: that the treaty could be canceled after being reviewed. The measure had worried the rulers of our country because it implies a permanent economic uncertainty.
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