What did the US government concede in the New NAFTA/USMCA negotiations?


I keep reading all about the US having extracted from Canada more access to their dairy market, getting rid of the diafiltered milk loophole, etc. The only things that they were portrayed as losing were things they had aimed to get that they didn't already have with the existing treaty (such as no dispute resolution).

Did USMCA cause the US to lose anything they had in the previous treaty, and if so, what?

Yet Another User

Posted 2018-12-03T13:52:11.037

Reputation: 171

Note: I wanted to put the tag 'NAFTA' on this but don't have the rep. – Yet Another User – 2018-12-03T13:52:51.840

FWIW, I've seen "CUSMA" popping up lately. North to South, pronounceable, and no confusion with the United States Marine Corp... – DJohnM – 2018-12-04T00:41:34.587



The big one (that wasn't in NAFTA) was online stuff: Canada and Mexico can now order stuff from the US and have a larger amount of the cost be 'duty free'. Canada went from $15 to $115, and Mexico went from $50 to $100. So the vast majority of online goods are no longer going to be taxed. Some (many) would say that the reduction of tariffs is better for all parties, but President Trump is not one of those people.

In addition, three things Trump wanted to add were flat-out rejected:

Steel: Trump wanted to tie the removal of steel tariffs to concessions by Canada and Mexico. Neither agreed with that.

Expiration Clause: Trump wanted to force Mexico and Canada back to the negotiating table after a few years. That got smacked down quickly.

And last, as you mentioned, dispute resolution.


Posted 2018-12-03T13:52:11.037

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