From the NAFTA to the USMCA: Competition, Monopolies and State-Owned Enterprises

Abstract

The chapter analyzes the provisions of Chapter 21 of the United States–Mexico–Canada Agreement (USMCA) regarding competition policy and of Chapter 22 on state-owned enterprises and designated monopolies, while comparing them with Chapter 15 of the North American Free Trade Agreement (NAFTA) dealing with competition policy, monopolies and state enterprises. It first looks at NAFTA (section 1) and then discusses the innovations under the USMCA (section 2). After highlighting key aspects of NAFTA and the USMCA, it concludes on the importance of competition chapters in trade agreements, their strategic dimension and their limits in relation to regional and global competition regulation (section 3). The USMCA builds on NAFTA and many institutional and normative innovations within other trade agreements, the Organization for Economic Cooperation and Development, the International Competition Network and other governance sites. If NAFTA’s effect on competition law and enforcement in North America was limited, the USMCA’s impact will depend on the three partners to intensify their cooperation.