In preparation for signing the NAFTA’s replacement agreement, the USMCA, Canadian Prime Minister Justin Trudeau, and Foreign Secretary Chrystia Freeland delivered speeches to Canada’s people. Among other things, the Foreign Minister noted that “The investor-state-dispute resolution system that has allowed companies to sue the Canadian government is also gone between Canada and the United States” (“Prime Minister Trudeau,” 2018, para. 23). The reason for removing ISDS from the treaty governing trade relations between Canada and the United States is that some unscrupulous companies have misused the treaty against the government and people of Canada. Canada was forced to pay US companies $ 300 million, the foreign minister said. In Canada’s opinion, this significant amount was paid inappropriately, as the ISDS agreement between Canada and the United States provided benefits for US investors. Therefore, the Canadian government has protected the country from future encroachments by unscrupulous businessmen.
The parties signed the agreement on January 29, 2020, including Donald Trump, who in his election campaign promised to completely abandon NAFTA, which, in his opinion, was unprofitable for American business (White, 2020). The experts noted that the new agreement almost completely duplicates NAFTA. It is noteworthy that the most significant attention was paid to the automotive and dairy industries. The new deal also expanded the protection of intellectual property and digital commerce.
It is important to emphasize that this agreement is now mutually fair and guarantees equal rights for all business participants and workers in Canada and the United States. The US market is vital for Canadian exports and imports, and therefore the agreement has become a national issue. The signing of the deal will simplify the business environment and help create thousands of new jobs in both the US and Canada.
References
Prime Minister Trudeau and Minister Freeland speaking notes for the United States-Mexico-Canada Agreement press conference. (2018). Justin Trudeau, Prime Minister of Canada. Web.
White, M. (2020). Trump signs the USMCA trade deal to replace ‘nightmare NAFTA.’ NBC News. Web.