But as any trade deal, there are supporters and critics. the supporters would say that this is the best thing that could have happened while the critics vouch for the fact that this is the worst trade deal ever!
From the supporters, the USMCA promises a lot on digital trade, rules of origin, intellectual property and labour rights. It is a high standard agreement that sets right what NAFTA couldn't.
CATO had this piece by Inu Manak that thought in very different terms. It stated that the rules of origin for the auto sector could lead to problems for local manufacturers needing to change their supply chains. Further, there is a possibility of labour disputes.
The most concerning aspect of the new labor rules is the potential litigation boondoggle they may unleash, with the inclusion of a rapid response mechanism (RRM) for labor enforcement, which was put into place to ensure remediation of a denial of collective bargaining rights. There are two separate RRMs, one as between Canada and Mexico, and the other between the United States and Mexico, and is specifically designed to handle a particular denial of the right of free association and collective bargaining by a private entity at a particular worksite.
Will the maximum of labour related disputes in trade agreements originate under the USMCA? Or is this just initial hype and things will ultimately settle down?
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