Usmca Tbt Agreement

As with the CPTPP, the USMCA imports the core rules of the WTO-TBT agreement, but adds other requirements that reduce the regulatory flexibility of the three countries or, more specifically, bring them closer to U.S. regulatory policy. Both the WTO TPTA agreement and the CPTPP are referred to Codex, a body managed by WHO/FAO, to set international standards, which requires scientific risk assessments and a “necessity test” if the rules go beyond what was agreed in Codex [4]. The CPTPP reduces some of the policy space for rules that go beyond international standards allowed by WTO rules [4], while the USMCA adds new restrictions. Art. 11.4 Allows, for example, a broader, applicable language on the recognition of national public or private standards bodies as relevant international standards, which refer to the adoption of voluntary standards (e.g. B corporate standards developed in the United States) as equivalent to Codex standards for the development of national rules. Like the CPTPP, the USMCA requires parties to “cooperate with each other. to ensure that international standards, guides and recommendations, which are likely to become a basis for technical regulation. Not to create unnecessary obstacles to international trade” (Article 11.4, para. 4). This means that new standards should be the least restrictive in advance, which risks subordining health and safety issues to those of trade.

All three countries have deeply integrated economies: Canada and Mexico are the two largest trading partners of the United States, while Canada and Mexico are in third place. The total value of trade in goods and services between the three countries was $1.3 trillion in 2017, $673 billion in trade between the United States and Canada, $616 billion in trade between the United States and Mexico [1] and $33 billion in trade between Canada and Mexico [2]. However, economic dependence on exports to the United States is greater than the other way around for both Canada and Mexico, given the much larger size of the U.S. domestic economy. The three countries have all made positive claims about the new agreement, highlighted its economic benefits for their own economies, while calling for improved labor and environmental protection. . . .

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