U.S. dairy farmers will have new export opportunities to sell dairy products in Canada. Canada will provide new access to U.S. products, including liquid milk, cream, butter, skimmed milk powder, cheese and other dairy products. It will also eliminate its tariffs on whey and margarine. For poultry, Canada will provide new access to chickens and eggs in the United States and increase access for turkeys. Under a modernized agreement, all other tariffs on agricultural products traded between the United States and Mexico remain zero. Many analysts explain these differences in results by the fact that the Mexican economy is “two-speed”, where NAFTA has led the growth of foreign investment, high-tech production and wage growth in the industrial north, while the south, largely agricultural, has remained disconnected from this new economy. University of Pennsylvania economist Mauro Guillen argued that Mexico`s growing inequality is due to NAFTA workers receiving much higher wages from trade-related activities in the north. Before work, here`s some background. The World Trade Organization (WTO) is the multilateral organization that has established the basic rules of trade among its 164 member states, including the United States.
Within the WTO, there are two non-tariff agreements that directly affect FDA regulators: the Agreement on the Application of Health and Plant Health Measures (SPS), which includes food and feed safety measures essential to the protection of human and animal health, and the Trade Technical Barriers Or CTOs Agreement, which covers the technical rules essential to compliance with FDA markings (packaging and packaging requirements, transparency, standardized measures and compliance assessment). On June 1, 2020, USTR Robert Lighthizer`s office released the uniform rules, which are the final hurdle before the agreement is implemented on July 1, 2020. You will find the text of the agreement here: ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/uniform-regulations The main objective of the US government for the SPS chapter was to strengthen the scientific basis of spS measures. This unique objective promotes both public health and trade and is reflected in the provisions of the SPS chapter as a whole. However, this objective is most directly achieved in the SPS section of risk and science analysis, which requires, for example, parties to withdraw actions that are no longer supported by scientific evidence or risk principles, and to document and provide the opportunity to comment on risk analyses and risk management decisions prior to implementation by the parties. These obligations provide the FDA with the opportunity to work with Canadian and Mexican regulators on scientific and technical issues to ensure the protection of public health while facilitating trade. At the same time, these obligations will not require the FDA to change its current regulatory approach. In early 2020, the U.S. Congress approved the USMCA with large bipartisan majorities in both chambers, and the agreement came into effect on July 1. Nevertheless, some critics have complained that the new rules of origin and minimum wage requirements are cumbersome and boil down to state-run exchanges.