United States-Mexico-Canada Agreement Research Articles

Inclusion of gender and labour standards in preferential trade agreements: evidence from North American and Canada-Chile agreements

ABSTRACT This article analyses the causes of the incorporation of gender provisions into preferential trade agreements (PTAs), based an analysis of the reasons for the inclusion of both labour and gender provisions in the North American Free Trade Agreement (NAFTA) and the United States-Mexico-Canada Agreement (USMCA), and in the Canada-Chile Free Trade Agreement (CCFTA). Drawing upon feminist and constructivist analysis, it argues for the importance of ideational factors such as policy emulation, social learning, the formation of transnational advocacy networks (TANs), as well as the role of Global South actors. Gender provisions often contain neoliberal elements that promote female entrepreneurship rather than more transformational approaches. The comparison of the USMCA and the CCFTA shows that the inclusion of stronger gender provisions in labour chapters (as in the USMCA) may be a more effective way to promote the interests of vulnerable workers than the inclusion of a gender chapter.

Trade Dilemma of Global Hegemony: Analyzing the Transition in US Trade Policy from Globalization Deals to Hybrid Deals

This paper presents an analysis framework of the trade dilemma faced by global hegemony. It argues that maintaining global hegemony and addressing domestic conflicts simultaneously is a challenging task. Since the 1980s, the United States has prioritized the expansion of transnational capital, often at the expense of domestic vulnerable industries and the interests of low-skilled workers. This unbalanced development has led to intensified social contradictions within the United States. To resolve these conflicts, the US has shifted from reciprocal globalization deals to self-interested hybrid deals, aiming to uphold the interests of transnational capital while also addressing the concerns of workers. The negotiation experiences of the United States–Mexico–Canada Agreement (USMCA) and the Indo-Pacific Economic Framework (IPEF) demonstrate this mode of the US trade policy. While this strategy may repair the domestic political foundation, it leads to new challenges for the US, such as discontent and resistance from the international community, or encountering difficulties in promoting cooperation with US trading partners. These challenges will pose a threat to the long-term stability of the international economic order.

China-Mexico Economic Relationship in the Context of China’s Penetration in Latin America

China’s relationship with Latin America countries experienced a process of significant expansion over the past two decades. Even though Latin America was not considered as part of the BRI when it was first established, China designed its economic strategy toward the region by emphasizing investment, financial and industrial capacity cooperation, besides trade. Afterwards, China invited Latin American countries to participate in the BRI at the China–Community of Latin American and Caribbean States (CELAC) Ministerial Forum in Santiago in January 2018. Twenty-one Latin American and Caribbean (LAC) countries have signed up to the BRI. However, there are few LAC countries that have not done so, among them the region’s largest economies such as Brazil, Mexico and Colombia, although Brazil is with full AIIB membership. This paper focuses on the specific economic relations between China and Mexico, as far as Mexico is the less involved LA country into the BRI, and Mexico’s position toward China is more aligned with that of its North American partners than to the Latin American countries. This article analyzes the specific situation of Mexico, characterized by its deep integration and dependency on the US market and examines the current economic relations of China and Mexico, considering the impact of the United States–Mexico–Canada Agreement on the bilateral economic relations. The structure of bilateral trade between Mexico and China is also examined, using the Grubel-Lloyd Index (GLI).

Reserving the right to say no? Equilibria around hard trade‐sustainability commitments in power‐asymmetric contexts

AbstractWhen will stringent sustainability commitments (not) be a stumbling block in the negotiation of trade agreements? Although the existing literature has explored the determinants of the design of sustainability provisions in trade agreements, few works have explored when countries will accept/reject those provisions once their content cannot be changed. Based on insights from game theory, we flesh out the conditions under which there will be an equilibrium in favor of hard sustainability provisions in trade deals. We then present empirical illustrations related to Mexico's participation in the United States–Mexico–Canada Agreement (USMCA) and Brazil's participation in the EU‐Mercosur trade negotiations. Our model shows that (1) fears of partner opportunism, (2) the costs of nonparticipation in trade deals, and (3) costs of adjustments to hard trade‐sustainability commitments are key to understanding whether a compromise can arise on trade and strong sustainability commitments. The model highlights what sorts of concessions ought to be made for negotiations to prosper. The findings point to how the changing structure of trade governance may affect the decision‐making process of Global South countries. The paper concludes with recommendations and avenues for further research.

The hidden dynamics of the USA-Mexico trade relationship: a partial export data decomposition approach

ABSTRACT This study employs a unique methodology to uncover the hidden dynamics of the USA-Mexico trade relationship under the United States-Mexico-Canada Agreement (USMCA) agreement. The conventional bilateral trade balance (BTB) only considers total export data, which may need to be revised for testing the J-curve hypothesis since countries (such as the USA) also re-export to their partners (e.g., Mexico). To address this, the study decomposes total export data into re-export data and domestic export data and proposes two new forms of J-curve hypothesis testing: the partial-domestic-J-curve hypothesis BTB and the partial-re-export-J-curve hypothesis BTB. The study's empirical findings suggest that the partial methodology should be used for asymmetric J-curve hypothesis testing in the USA-Mexico trade. The findings also indicate that Mexican consumers are more sensitive to changes in the value of the peso for US domestic products than re-exported products, and they purchased more US domestic products than re-exported products during the COVID-19 pandemic.

Why Do (High-Income) Countries Wish to Green Their Trade Agreements?

In recent years, many states have undertaken to green their free trade agreements (FTA). As the pace of this evolution towards greener trade relations continues to accelerate, it has also been met with resistance. The inclusion of environmental commitments in FTAs has sometimes been dismissed as an attempt by high-income countries to level the playing field for their market actors by raising environmental standards abroad. Against this background, this article aims to investigate what underlying motive(s) (high-income) states pursue when they negotiate environmental provisions. Using the United States-Mexico-Canada Agreement (USMCA) as a case study, it is argued that it is possible to rely on the legalization of these commitments to unravel treaty parties’ motives for negotiating such rules in the first place. In the case of the USMCA, it is found that the agreement’s environmental commitments could be interpreted as mirroring concern either for the environment or for unfair foreign competition. A closer look at the negotiation process leading to the adoption of the agreement suggests that it was mainly – although certainly not exclusively – out of environmental concerns that stringent environmental commitments were included in the USMCA. free trade agreements, US trade relations, economic integration, United States-Mexico- Canada Agreement, asymmetries of power, negotiation of treaties, environmental provisions, green protectionism, trade and sustainable development, legalization of international commitments

DETERMINANTS OF USMCA COMPETITIVE FORCE FORMATION

Understanding the factors that influence the formation of the competitive force within the United States-Mexico-Canada Agreement (USMCA) is crucial for delineating the features that contribute to the effective functioning and development of its economic competitive landscape. The primary objective of this article is to examine the impact of the interplay between determinants influencing the global competitiveness of member states and international integration groupings on the sustainable economic growth of the USMCA. The article introduces the author's conceptual framework, which presents a comprehensive classification of determinants that shape and enhance the adaptive competitiveness of integrated economic systems. This framework, alternatively referred to as the interpretation of the drivers of the USMCA's global competitiveness, applies to any international integration grouping. The proposed approach advocates the separation of the USMCA's development model as an independent entity, distinct from the model that governs the global competitiveness of individual member states. Notable differences have been identified by evaluating several determinants, including economic performance, government efficiency, business efficiency and infrastructure, on the formation of the global competitiveness of member states within the USMCA. The member states of the USMCA show significant differences in their global competitiveness. It is worth mentioning that the criterion of economic performance stands out as the most influential factor, with all three member states performing better in terms of competitiveness on this criterion. The study's findings underscore that the USMCA's competitiveness is a key feature of its economy. It is evident through the cumulative, synergistic effect of the pooling of global competitive forces among the member states. This amalgamation strengthens the USMCA's position in the global economy. Assessing the global competitiveness of the USMCA is important for delineating the development trajectories of member states within the international integration grouping. It is crucial for the design of a coherent competitiveness policy and the promotion of intergovernmental and inter-union dialogue. It also serves as a valuable indicator or marker of the USMCA's competitive development trajectory.

Contradictions and tensions in the way the USMCA regulates energy

Abstract The international regulation of energy is complex, involving various legal frameworks such as economic agreements, environmental conventions, and dispute resolution mechanisms. These instruments often overlap and may not align, creating challenges for addressing energy-related issues. The United States–Mexico–Canada Agreement (USMCA) exemplifies these complexities. It addresses entitlements to natural resources, protection of energy-related transactions, cross-border energy policies, and environmental externalities. However, the USMCA does not fully resolve conflicts among differing policy goals within the energy sector. This article examines how the USMCA navigates issues related to resource entitlements, energy transactions, policy clashes, and environmental concerns. It argues that the absence of a unified energy policy leaves disputes to be balanced by resolution bodies, such as arbitration panels. The article scrutinizes each aspect of the USMCA’s approach and discusses potential mechanisms for resolving policy conflicts. The USMCA’s treatment of energy-related matters underscores the intricate interplay between international economic law and the energy sector, with implications for regional competitiveness and sustainability.

5. United States-Mexico-Canada Agreement (USMCA) Disputes

5. United States-Mexico-Canada Agreement (USMCA) Disputes

Identity, migration, and social media: Generation Z in USMCA

Abstract Purpose This research analyzes national identity representations held by Generation Z youth living in the United States-Mexico-Canada Agreement (USMCA) countries. In addition, it aims to identify the information on these issues that they are exposed to through social media. Methods A qualitative approach carried out through in-depth interviews was selected for the study. The objective is to reconstruct social meaning and the social representation system. The constant comparative method was used for the information analysis, backed by the NVivo program. Findings National identity perceptions of the adolescents interviewed are positive in terms of their own groups, very favorable regarding Canadians, and unfavorable vis-à-vis Americans. Furthermore, the interviewees agreed that social media have influenced their desire to travel or migrate, and if considering migrating, they have also provided advice as to which country they might go to. On another point, Mexicans are quite familiar with the Treaty; Americans are split between those who know something about it and those who have no information whatsoever; whereas Canadians know nothing about it. This reflects a possible way to improve information generated and spread by social media. Practical implications The results could improve our understanding of how young people interpret the information circulating in social media and what representations are constructed about national identities. We believe this research can be replicated in other countries. Social implications We might consider that the representations Generation Z has about the national identities of these three countries and what it means to migrate could have an impact on the democratic life of each nation and, in turn, on the relationship among the three USMCA partners. Originality/value As one of the few studies carried out on USMCA national identities and by qualitatively exploring the representations that Generation Zers have about them, it may provide information that could contribute to expanding understanding among the citizens of the region.

Mobilization and Strategies: Comparing Trade Lobbying in the US and Canada

Do US lobbying patterns extend to other countries? To date no study has systematically compared US lobbying patterns with those of other countries using observational data. Taking advantage of similar lobbying disclosure rules in the US and Canada, we create a cross-country lobbying dataset. We focus on the United States-Mexico-Canada Agreement (USMCA) to control for timing, salience, and issue scope. This helps us attribute differences in firm mobilization and trade lobbying strategies across the two countries to differences in political institutions. Strikingly different USMCA lobbying patterns emerge. Within the same industry, trade associations, the executive branch, and in-house lobbyists play a larger role in Canada. Meanwhile, well-established determinants of US lobbying fail to explain patterns of mobilization and the use of external lobbyists in Canada. These findings provide insights into comparative lobbying studies and indicate that some stylized facts about lobbying are unique features of the US political system.

A Comparative Study of the RCEP and the USMCA from the Perspective of International Political Economy: Based on the Analysis of Digital Trade Rulemaking

Reginal Comprehensive Economic Partnership (RCEP) and The United States-Mexico-Canada Agreement (USMCA) are both emerging free trade agreements, covering the major economies in East Asia and North America respectively. After screening, 24 papers were selected to do a comparative study of RCEP and USMCA. The paper applies the interdependence theory and the dependency theory in the field of international political economy to interpret the logic of rulemaking of the two FTAs. For the RCEP, the key is the growing interdependence (with increasing trade volumes and growing economic gains) between ASEAN countries and other member states. In addition, economic complementarity also influences the interdependence between the ASEAN and other states in East Asia, reinforcing their willingness to deepen this relationship. For the USMCA, the key is the dependency relationship between the U.S. and Mexico. This dependency continues to this day due to the untouchable structural power of the United States, and still forces Mexico to submit to the U.S. willingness to set rules for the USMCA. This paper innovatively introduces theories from the field of international political economy to study the rulemaking of the new FTAs, which provides certain directions for future academic research in the related fields.

The UK’s new free trade agreements in the Asia-Pacific: how closely is it adopting US trade regulation?

In a global economy and system increasingly defined by new developments and complexities in trade, whose rules and regulations govern that trade matter. The UK has embarked on a new post-Brexit trade policy, signing its first wholly new free trade agreements (FTAs) with Australia and New Zealand. It is also in negotiations to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) as part of the UK’s aspirations to become an integral part of the Asia-Pacific trading community. This study’s research and text analysis on the UK’s bilateral FTAs with Australia and New Zealand reveals high levels of similarity with two larger regional agreements heavily imprinted with US trade regulatory norms—this being the CPTPP itself and the United States–Mexico–Canada Agreement (USMCA). The UK’s revealed willingness to strongly align itself with US trade regulatory norms has important implications for the Asia-Pacific. It also raises some key issues on what kind of trade partner the region might expect a post-Brexit ‘Global Britain’ to become, and how the UK’s deeper planned engagement with the Asia-Pacific could affect its strategic dynamics. This could significantly depend on how closely the UK is pulled over time into the US’ trade regulatory orbit.

Rigged Elections: The Failure of Mexico’s New Labor Model to Protect Farmworker Rights

Due to recent labor reforms and the United States-Mexico-Canada Agreement (USMCA) negotiation, Mexico ratified freedom of association and collective bargaining rights. This new labor model promises the end of employer protection unions that thwart labor organizing and drive down wages. Through an ethnographic case study of farm labor organizing in the agro-export industry in San Quintín, Baja California, Mexico, this article argues that recent labor reforms are not sufficient to democratize labor relations in rural industries as they fail to overcome regional and transnational power structures. Although limited to one case, this article fills a gap in the literature on the impact of recent labor reforms on farmworkers. Mexico’s salaried agricultural workers offer critical insights into the promises and failures of current efforts to reform labor laws and remediate the adverse effects of economic integration.

9. Commission for Environmental Cooperation (CEC)

The CEC was created in 1994 under the North American Agreement on Environmental Cooperation (NAAEC), concluded by Canada, Mexico, and the United States as a side agreement to the North American Free Trade Agreement (NAFTA). On 1 July 2020, the United States–Mexico–Canada Agreement (USMCA) entered into force in the three countries. The Environmental Cooperation Agreement (ECA) took effect upon entry into force of the USMCA. The USMCA and ECA replace NAFTA and NAAEC, respectively, and serve as the new framework agreements for the continuation of the CEC under the modalities previously in place. The CEC’s mission is to facilitate collaboration among the three countries and encourage public participation to foster conservation, protection, and enhancement of the North American environment. The CEC is composed of a Council, Secretariat, and Joint Public Advisory Committee (JPAC). The Council is composed of cabinet-level environmental officials from each of the ECA Parties. It governs the CEC, defines the strategic priorities for collaborative work, and approves the overall program and budget. The CEC Secretariat is headquartered in Montreal. It is headed by an executive director, who oversees implementation of a cooperative work program on North American environmental matters and the processing of public submissions on enforcement matters. A nine-member JPAC acts as an advisory body to the Council on matters within the scope of the ECA (more information can be found at ˂https://www.cec.org>).

Intergovernmental Yet Dynamically Expansive: Concordance Legalization as an Alternative Regional Trading Arrangement in ASEAN and Beyond

Abstract The conventional regional trading arrangement landscape holds two primary models. One is the ‘dynamically expansive supranational model’ of the European Union (EU) that progressively enlarges its community beyond the constituent treaty through its evolving laws and institutions. The other is the ‘static intergovernmental model’ of the United States-Mexico-Canada Agreement (USMCA) where members strictly uphold obligations in the original agreement – no more and no less. A certain genre of Asia-Pacific regional trading arrangements (and beyond in the global South) sits uncomfortably within this bifurcated landscape. Sovereignty-centric, they seek a dynamic and ever-expanding community like the EU but, firmly rejecting supranationalism, insist on intergovernmental modalities as seen in the USMCA. Unsurprisingly, they have not been effective. Using post-2007 integration data from the Association of Southeast Asian Nations, this article presents concordance legalization as a new explanatory framework in this landscape, demonstrating how one can regionalize successfully despite being simultaneously agenda expansive and intergovernmentally operational. Concordance legalization’s four-pronged strategy – the constituent treaty explicitly entrenching intergovernmentalism to facilitate dynamic agenda expansion; the dual-step system of primary and secondary laws (with a carefully calibrated use of hard and soft instruments); the organizational hierarchy that expands, implements and exerts intra-regional accountability pressures through numerous meetings and monitoring mechanisms (rather than adjudication) that enforce compliance – has enabled this curious success.

Binational Panel Review of Trade Remedies Determinations: Prospects for Exporting the USMCA’s Unique Procedure

The United States-Mexico-Canada Agreement (USMCA) contains a distinctive procedure under which anti-dumping and countervailing duty determinations by national agencies can be reviewed by an ad hoc binational panel established under the treaty as an alternative to domestic court review. Binational panel review was first adopted in the Canada-US Free Trade Agreement (Canada-US FTA) to respond to Canada’s concern that the administration of the US anti-dumping and countervailing duty laws by the US agencies was biased in favour of the US domestic industries and the review of agency determinations by the US courts was inadequate to address that bias. Continuing Canadian concerns, shared by Mexico, resulted in binational panel review being included in the USMCA, even though the US had sought to eliminate it. Compared to US judicial review, binational panels under the Canada-US FTA and its successor, the North American Free Trade Agreement (NAFTA), have resulted in more frequent remands of the US agency determinations often leading to lower (or even zero) duties in anti-dumping and countervailing duty cases. As well, the prospect of rigorous panel review has discouraged the filing of anti-dumping and countervailing duty cases, the commencement of anti-dumping and countervailing duty investigations, and the imposition of duties in relation to imports from Canada and Mexico. Adopting binational panel review in other treaty contexts would be most attractive where significant concerns about domestic agencies comparable to Canada’s are present and national anti-dumping and countervailing duty regimes in participating countries have similar structures and procedures for judicial review. anti-dumping, countervailing duty, trade remedies, free trade, North America, dispute settlement

China's foreign direct investment in Mexico's auto parts-automotive industry:

In 2020 China displaced the United States as the main country of origin of cross-border M&A type investments and ranked fourth as the origin of new greenfield projects. In the regional context, since 2010 Mexico appears as the second destination of Chinese direct investment directed to manufacturing and as the first destination in the automotive auto parts industry (AAI). The article examines the determinants of Chinese direct investment in Mexico from a regional perspective and from the case study of the Chinese multinational Minth based on Aguascalientes, Mexico. The results allow us to conclude that the growing presence of direct investment by Chinese private companies in the AAI is explained by the favorable prospects for demand generated by the presence of global assemblers in Mexico and geographic and institutional variables such as the proximity whit United States, the agglomeration economies presence and benefits of the United States-Mexico-Canada Agreement (USMCA).

Examining Labour Rights Enforcement Mechanisms in NAFTA and the USMCA and its Impact on Labour Conditions in Mexico

The purpose of this paper is to examine changes made to labour rights enforcement mechanisms under the United States-Mexico Canada Agreement, from its predecessor agreement, the North America Free Trade Agreement, and the impact it may have on labour conditions in Mexico. Some scholars argue that the labour rights enforcement mechanisms in the North America Free Trade were fundamentally flawed, and allowed the Mexican government to passively enforce its domestic labour laws to the detriment of its workforce. This paper will argue that while the United States-Mexico Canada Agreement has made positive advancements to remedy labour issues under the North American Free Trade Agreement, limitations still exist, which may promote inequities amongst Mexican workers.

Duty Evasion in Free Trade Agreements: Norm Emergence and Implications

Despite the failure of states to adopt multilateral rules to address the circumvention of anti-dumping and countervailing duties, efforts have more recently been deployed by the United States to focus on the issue of ‘duty evasion’. After failed attempts to discuss the issue at the World Trade Organization (WTO), the United States–Mexico–Canada Agreement (USMCA) specifically addresses cooperation between Parties regarding information sharing and duty evasion verification requests with a view to ensuring the enforcement of trade remedy laws. Can the elaboration of duty evasion provisions in regional trade agreements facilitate the negotiation of rules to address the issue of anti-circumvention at the multilateral level? This article argues that the motivations and inherent limits underlying the USMCA duty evasion provisions are most likely to impede broad adoption at the multilateral level. It proceeds in two steps. First, while the United States is playing a pivotal role as a norm entrepreneur in the emergence of these duty evasion provisions, the article demonstrates a clear evolution in its strategy toward a populist approach to international economic policy. Second, after identifying similarities with other provisions, the article addresses the lacunae in the USMCA duty evasion provisions from a legal perspective. duty evasion, anti-circumvention, anti-dumping duties, countervailing duties, United States–Mexico–Canada Agreement, Trans-Pacific Partnership Agreement, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, World Trade Organization, norm entrepreneur, populism