Out with The Old, In with The New

By: Nick Stanley / October 2, 2018

Late Sunday evening The U.S., Mexico, and Canada came to a trilateral trade deal to replace North American Free Trade Agreement (NAFTA).  The new agreement is being called USMCA, U.S.-Mexico-Canada Agreement.   After a year of negotiations, here are some of the terms that are now public.

  • Canada will loosen restrictions on its dairy market that will allow for Americans to export $560 million worth of dairy products.
  • Chapter 19 from the original NAFTA will stay in place, allowing Canada, Mexico, and the U.S. to challenge one another’s anti-dumping and countervailing duties in front of a panel or representatives instead of through the courts.
  • U.S. steel tariffs of 25% stay in place.
  • U.S. drug companies can now sell pharmaceuticals in Canada for 10 years (up from 8 years) before facing generic competition.
  • Mexico and Canada get assurance that automobile parts exported to the U.S. will avoid all tariffs, even those put in place down the road.

Other provisions address digital trade, establishing intellectual property, and the combatting of currency manipulation.  Once the agreement is signed by all three countries leaders in November, the new deal will still have to be submitted and voted on by Congress in 2019. 

This will setup for provisions to take place in 2020 with a mandatory review after the first 6 years.  After the first review period, if all parties still agree and are happy with the deal, it will continue for the full 16 year period with an option to renew for another 16 years.

 

https://www.washingtonpost.com/business/2018/10/01/us-canada-mexico-just-reached-sweeping-new-nafta-deal-heres-whats-it/?utm_term=.c05b9de5a98e

https://www.usatoday.com/story/news/2018/10/01/comparison-nafta-and-usmca-trade-agreements/1487163002/

https://www.farmfutures.com/trade/mexico-us-near-nafta-agreement-autos


Categories: United States, Tarriffs


Nick Stanley

Written by

Nick Stanley

By listening to each of my customers unique fueling needs, I am able to pair them with the best solution. Through effective communication, I provide the highest level of personal customer service which creates long lasting professional relationships.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us