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1. International Intellectual Property after the New NAFTA

Author:
Jeremy de Beer
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The Canada-United States-Mexico Agreement (CUSMA) is the new high-water mark in international intellectual property (IP) law. CUSMA includes most of the Trans-Pacific Partnership provisions that were suspended in the Comprehensive and Progressive Trans-Pacific Partnership, except for a few pharmaceutical-related provisions amended after signing. Canada will be required to make meaningful changes to domestic IP laws, including copyright term extension, criminal penalties for tampering with digital rights management information, restoration of patent terms to compensate for administrative and regulatory delays, broader and longer protection for undisclosed testing data and other data, new civil and criminal remedies for the misappropriation of trade secrets, and additional powers for customs officials to seize and destroy IP-infringing goods.
Topic:
International Trade and Finance, Regional Cooperation, Intellectual Property/Copyright, NAFTA, and USMCA
Political Geography:
United States, Canada, North America, and Mexico

2. Mexico and the United States: a new beginning | México y Estados Unidos: un nuevo comienzo

Author:
Agustín Barrios Gómez, Henry Cuellar, Juan Carlos Baker, and Kenneth Smith
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Mexican Council on Foreign Relations (COMEXI)
Abstract:
North America started 2020 as a bloc of three democratic countries with shared values that trade freely in the context of regional peace and cooperation. We are nearly 500 million North American citizens who came together to sign the North American Free Trade Agreement (NAFTA) of 1994 and its successor, the United StatesMexico-Canada Agreement (USMCA) of 2018, providing a legal framework for commercial freedom on our continent. The world often conducts its affairs with a zero-sum game mentality, meaning that one country’s gain is another’s loss. This is why agreements like NAFTA, in 1994, and the USMCA, today, are particularly valuable. It is also the reason that we must not take them for granted. The effort invested in creating the USMCA was born precisely from the understanding of a fundamental idea: restricting the liberty of our people to trade freely is a mistake. It was not an easy case to make. The current U.S. president based his political campaign on animosity towards Mexico, in particular, and against exchange with the world, in general. However, he was led to a position of saving free trade in North America by the millions of his fellow citizens who saw their economic livelihood threatened by protectionism and the possibility of severing close economic ties with their neighbors. At the same time, a sector of Mexican society that has always been antagonistic to two pillars of trade in our continent: integration with the United States, and economic freedom, came to power in Mexico. This raised the specter of a challenge to free trade from Mexican socialists. However, the overwhelmingly positive results and obvious benefits of NAFTA for Mexico were of such magnitude, that protectionism was not an issue in the return to power of the nationalist Left. It now looks like a given, but both in the case of the U.S. and in the case of Mexico, the survival of the framework of openness born on January 1, 1994, is a testament to enormous political and economic success. In a world that increasingly favors the Pyrrhic victories of political symbolism, the triumph of reason over nativist fervor is well worth highlighting. For each of the three countries, the USMCA was the way to protect these gains, but each country placed its own emphasis on their priorities. Canada, currently the most politically stable country of the three, clearly sought to uphold a system that provides the country with access to its main market, as well as to another market (Mexico) in which it has fewer interests, but which is still important. The United States, the former architect of the world order that promoted economic freedoms for 71 years (1945-2016), was set to become its spoiler. Fortunately for the general interest, despite the rhetoric, with the USMCA it was possible to find a compromise that safeguarded the gains made from economic integration since 1994. Sectors of society, such as farmers and border communities which had never organized to defend their markets, got together to successfully make their case directly to the Administration. Mexico’s interests were clearer: manufactured exports are the most dynamic and competitive part of its economy. They not only provide a major source of hard currency, but in conjunction with the imports made possible by income from exports, they support the internal market, as well. For Mexico, even more than for Canada, protecting free trade of North America was imperative. The result was an Agreement that protected the benefits of North American commercial freedom, at the same time as it brought certain aspects up to date. It also addressed a number of the concerns that had been raised by blue collar workers in the United States, particularly pertaining to the automotive sector. This document helps us understand these changes and provides perspective from three authors who were directly involved in making the USMCA a reality.
Topic:
Treaties and Agreements, Bilateral Relations, Economy, NAFTA, Free Trade, Trade, and USMCA
Political Geography:
North America, Mexico, and United States of America

3. Supporting Prosperity and Competitiveness by Approving the New USMCA

Author:
Earl Anthony Wayne
Publication Date:
03-2019
Content Type:
Journal Article
Journal:
The Ambassador's Review
Institution:
Council of American Ambassadors
Abstract:
On November 30, the leaders of the United States, Canada and Mexico signed a new trade agreement to succeed the 1994 North American Free Trade Agreement. The United States-Mexico-Canada Agreement (USMCA) modernizes the 25-year-old NAFTA, but the legislatures in all three countries must still approve it.[1] The new USMCA will preserve the massive trading and shared-production networks that support millions of jobs in the U.S., Mexico and Canada and the ability of North America to compete effectively with China, Europe and other economic powers. Approving USMCA this year is very much in the national interests of all three countries given the $1.3 trillion in trade between them and the many businesses, workers and farmers that depend on the commerce and co-production that interlinks North America. These economic relationships also strengthen the rationale for maintaining strong political relationships among the three neighbors. There was widespread agreement to update NAFTA to reflect the changes in trade practices and in the three economies since 1994.[2] NAFTA does not cover Internet-based commerce, for example. Other areas required modernization, including trade in services, protection of intellectual property rights (IPR), environment and labor, which is a priority for U.S. unions.[3] Mexico, Canada and the U.S. tried to accomplish this NAFTA update with negotiation of the Trans-Pacific Partnership (TPP) agreement, but in January 2017 President Donald Trump pulled out of TPP, preferring to renegotiate NAFTA.[4] Approval of USMCA by the U.S. Congress remains uncertain. A number of Democrats are asking for stronger enforcement commitment particularly regarding labor. Others express concern that USMCA provisions may keep some prescription medical costs high.[5] Business and agricultural associations are urging approval of USMCA because it will provide certainty to continue the cross-continental collaboration that preserves vital intra-North American markets for manufacturing, agriculture and services and helps them out-perform global competitors. In response to democrat and union concerns, USMCA’s advocates argue that it includes significantly stronger labor provisions and enforcement.[6] Before the agreement moves ahead, however, the three countries must also find a solution to the tariffs the U.S. put on steel and aluminum from Canada and Mexico in 2018 for “national security” reasons. In response, those countries imposed equivalent tariffs on a range of U.S. exports, spreading economic pain across all three countries.[7] Mexico and Canada, as well as key members of Congress, want this problem resolved before approving USMCA.[8] The U.S. International Trade Commission must also assess USMCA’s economic impact. This report is due in mid-April. The administration must also propose implementation legislation (and guidelines) before Congress formally considers the agreement. Congress will then have a limited time to act on USMCA under existing legislation, but members of Congress could drag the process out.[9] The political window for U.S. congressional approval will close this year, however, given the 2020 U.S. elections.[10] President Trump, USTR Lighthizer and others have begun lobbying for approval, as have Mexico and Canada more quietly. The months ahead will thus be vital for trade and long-term relationships in North America and for the continent’s ability to weather well future international competition. Given the enormous economic benefits of approving USMCA, the U.S. Congress, the Administration and the non-government stakeholders should engage intensively to find ways to address concerns raised and find a “win-win” way to approval. Fortunately, the United States public increasingly views trade in North America as positive. According to the Chicago Council on Global Affairs, for example, those seeing NAFTA and now USMCA as “good” for the U.S. economy have grown significantly, rising from 53 percent in 2017 to 70 percent seeing USMCA as “good” this year. This is a solid foundation for rapid approval of USMCA.[11]
Topic:
Regional Cooperation, NAFTA, Trade, and USMCA
Political Geography:
United States, Canada, North America, and Mexico

4. The Future of North America’s Economic Relationship: From NAFTA to the New Canada-United States-Mexico Agreement and Beyond

Author:
Meredith Lily, Hugo Perezcano, and Christine McDaniel
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The Canada-United States-Mexico Agreement (CUSMA) — known in the United States as the United States-Mexico-Canada Agreement (USMCA) — was reached on September 30, 2018, and will replace its predecessor if successfully ratified by legislatures in all three countries. Several weeks later, on October 14–16, 2018, thought leaders from Mexico, the United States and Canada gathered for the fourteenth annual North American Forum in Ottawa, Ontario. In light of these events, CIGI initiated a trilateral project to anticipate and predict how North American trade and economic relations would unfold in the near term and further into the future. Three authors, Christine McDaniel, Hugo Perezcano Díaz and Meredith Lilly, each from one of the North American countries, explain the importance of the new CUSMA to their respective countries and how economic relations could be reshaped in the coming months and years. Earlier versions of these papers were presented in a panel discussion at the North American Forum.
Topic:
International Trade and Finance, Regional Cooperation, NAFTA, and USMCA
Political Geography:
United States, Canada, North America, and Mexico

5. Does Canada’s Foreign Trade Policy Give Innovating Canadian Firms a Competitive Edge Internationally?

Author:
Olena Ivus and Marta Paczos
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
In recent years, Canada has adopted the Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Canada-United States-Mexico Agreement (CUSMA). Like other modern international trade agreements, CETA, the CPTPP and the CUSMA include protections for innovators’ profits and technologies in the form of intellectual property rights (IPRs) regulations. These trade agreements will have a first-order impact on the volume and composition of trade in goods and innovation with sensitive intellectual property (IP) in Canada, as well as having an impact on global welfare distribution. But is Canada’s membership in these agreements good for Canadian firms looking to compete globally? This paper begins with a review of the IP protections instituted through recent trade deals involving Canada. It discusses the nature and scope of Canada’s IP obligations under CETA, the CPTPP and the CUSMA and explains how these obligations fit within the current Canadian legal framework. The changes in the standards of IPRs under these agreements will have a first-order impact on the volume and composition of trade in IP-sensitive goods, innovation and global welfare distribution and so deserve thorough debate. The paper then proceeds with a broader discussion of the reasons to include IP provisions in international trade agreements and the rationale for international coordination of the IPRs policy. Next, the paper discusses how IP provisions in trade agreements limit the freedom to use IP policy to promote national interests, while acknowledging that the various IP obligations are counterbalanced by several flexibilities, including the right to establish local exhaustion policies. The paper concludes with policy recommendations.
Topic:
International Trade and Finance, NAFTA, Trans-Pacific Partnership, Innovation, and USMCA
Political Geography:
United States, China, Canada, Asia, North America, and Mexico

6. Mexicans, Americans Share Positive Views of USMCA Trade Agreement

Author:
Craig Kafura, Jorge Buendía, and Esteban Guzmán Saucedo
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
The Trump administration’s push to renegotiate the North American Free Trade Agreement, along with the imposition of steel and aluminum tariffs, has strained an already tense relationship between the United States and Mexico. Despite those tensions, polls conducted by the Chicago Council on Global Affairs and Buendía y Laredo find broad public agreement on trade on both sides of the border. Majorities of both Mexicans and Americans agree that their economic relationship is important, are concerned about a trade war hurting their local economy, see international trade as having a positive impact on their nation’s economy, and expect the newly-signed US-Mexico-Canada Agreement on trade to be good for their nation’s economy.
Topic:
Public Opinion, NAFTA, and Trade Wars
Political Geography:
North America, Mexico, and United States of America

7. The Global Exchange (Winter 2018)

Author:
Adam Frost, David J. Bercuson, Stephen Blank, Monica Gattinger, Sarah Goldfeder, Colin Robertson, Hugh Stephens, Laura Dawson, Randolph Mank, Ferry de Kerckhove, Colin Robertson, Andrew Caddell, Robert Hage, David Perry, and Kelly Ogle
Publication Date:
12-2018
Content Type:
Journal Article
Journal:
The Global Exchange
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
During the 1947 Duncan & John Gray Memorial Lecture then-minister of external affairs, Louis St. Laurent, outlined guiding principles for Canada’s engagement with the world. In his address, he recognized that Canada could not maintain the standard of living Canadians had come to enjoy in isolation from the rest of the world. He said, “[we] are dependent on markets abroad for the large quantities of staple products we produce and cannot consume, and we are dependent on supplies from abroad of commodities which are essential to our well-being.” This irrefutably remains true today. Canada’s ability to utilize its vast wealth of resources has afforded it the opportunity to become one of the most affluent and developed nations in the world, making the preservation of such ability of vital national interest. However, trade in the 21st century is more complex than ever before. Technology allows for transactions between parties scattered across the globe to occur near instantaneously, and complicates the tracking and classification of many goods and services. Moreover, global political developments and economic transformation are threatening the liberal world order built and protected by the United States since the Second World War. China’s emergence as an economic juggernaut is shifting the global economic centre of gravity. Furthermore, reactionary domestic political forces within much of the western liberal democratic world, including the United States, question the value of continued support for the status quo. Tectonic change is afoot. In response, Canada is charting its path to navigate the challenges of 21st century global trade. Prime Minister Justin Trudeau’s Liberal government is pursuing a progressive trade agenda as it seeks to modernize existing agreements, implement newly minted agreements, and explore potential future opportunities. The lead package of this issue examines a multiplex of challenges and opportunities presented to those currently crafting Canadian trade policy. Geographically, it spans not only the management of relations with the United States and NAFTA renegotiation, but also the geopolitical considerations of bolstered engagement with Asia and the underappreciated opportunities present in Africa and South America. In addition to "with whom", this package also addresses the "how and why" of trade: the difficulty of adapting trade practices to the digital age and the costs, benefits and limitations of projecting Canadian values via trade relations. In computer simulated and professional chess matches white consistently wins more often than not. The lack of first-mover advantage is a formidable deficit to overcome. Those who are not leading, are fated to play catch-up. The challenges facing Canada’s policy-makers responsible for protecting and advancing our national interest via trade are legion. To optimally address these challenges, Canada is best served by being proactive at the forefront of negotiations. The benefits of cultivating a proactive posture are enticing, and the costs for failing to do so are avoidable. Canada must adapt to the dynamism of the global economic order, or fight to catch-up.
Topic:
Diplomacy, International Trade and Finance, Science and Technology, Infrastructure, Internet, NAFTA, and Trade Policy
Political Geography:
Africa, Japan, Canada, India, Asia, North America, and United States of America

8. Creating the North Atlantic Marketplace for Jobs and Growth: Three Paths, One Detour, A U-Turn, and the Road to Nowhere

Author:
Daniel S. Hamilton
Publication Date:
01-2018
Content Type:
Special Report
Institution:
Center for Transatlantic Relations
Abstract:
For decades the partnership between North America and Europe has been a steady anchor in a world of rapid change. Today, however, the transatlantic partnership itself has become unsettled and uncertain. Nowhere is this clearer than in the economic sphere. Voters across the United States and many parts of Europe have grown skeptical of open markets. Concerns about stagnant wages, widening income inequality, and pockets of stubbornly high unemployment have combined with fears of automation, digitization and immigration to swell economic insecurities on each side of the Atlantic. The election of Donald Trump as U.S. president and the decision by British citizens to leave the European Union have only added to transatlantic uncertainties. This state of division and mutual inwardness threatens the prosperity and ultimately the position of North America and Europe in the global economy and the broader global security system. This study charts possible paths by which Americans and Europeans can navigate this strange new world. It describes how the transatlantic economy is being transformed by domestic political uncertainties, the digital revolution, the changing nature of production, and the diffusion of global power and intensified global competition. It takes account of shifting trade relations among the United States, Canada and Mexico through NAFTA, and what Brexit and the rise of non-EU Europe may mean for the European Union and for transatlantic partnership.
Topic:
Economics, International Trade and Finance, Treaties and Agreements, Partnerships, Brexit, Economic growth, Trump, and NAFTA
Political Geography:
United Kingdom, Europe, Canada, North America, Mexico, United States of America, and European Union

9. Looking for a Platform in North America: Taiwan, Mexico, and Cross-Strait Relations

Author:
Fabricio A. Fonseca
Publication Date:
01-2018
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
This article compares the approach followed by Mainland China and Taiwan in their economic relations with Mexico. Both sides of the Taiwan Strait have developed an interest in Mexico as an export platform to North America and the Western Hemisphere. The Mexican influence over Central America is also valued by both Beijing and Taipei. However, due to their disparities in economic and political development, the authorities and businessmen in the mainland and Taiwan have chosen different paths to conduct their interactions with Mexico. On the other hand, the deep economic integration between China and Taiwan, particularly the important investments made by Taiwanese firms in the mainland during the past three decades, have had a considerable impact on their trade with Mexico. The latter’s trade deficit with the PRC cannot be explained without the role played by enterprises from Taiwan, who continuously seek to remain competitive internationally.
Topic:
Business, NAFTA, Investment, and Trade
Political Geography:
China, Taiwan, Central America, and Mexico

10. What Determined 2015 TPA Voting Pattern?: The Role of Trade Negotiating Objectives

Author:
Yeo Joon Yoon and Woong Lee
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This paper analyzes 2015-TPA voting patterns in the Congress in the context of the trade negotiating objectives. By setting the trade negotiating objectives, the Congress lays out important trade agenda that the Administration is ex-pected to address when it is negotiating trade deals with foreign countries. Therefore setting the objectives is subject of heated debates in the Congress and an important part of TPA. LPM and probit models are used to evaluate the importance of each trade negotiating objectives in 2015-TPA voting deci-sions. It turns out that the objective on promoting U.S. agricultural exports by reducing unfair trade barriers positively affected the voting decision in favor of the TPA. The objective on enforcing strong labor standards on trade partners also had significant impacts. One other notable result is that how much each congressional region export to China was also an important de-terminant. This variable is meant to capture several negotiating objectives as well as growing worries of large trade deficits with China. This study docu-ments important issues that U.S. Congress is concerned about in making conducting and implementing trade policies. It may provide insights into the future course of U.S. trade policy and trade deals such as renegotiation of NAFTA and Korea-US FTA.
Topic:
Treaties and Agreements, NAFTA, Voting, and Trade
Political Geography:
Asia, South Korea, North America, and United States of America