Drafting “NAFTA 2.0” had been in the works for some time, and it’s taken almost as long for all three countries to ratify the deal in their own governments. Mexico ratified the U.S.-Mexico-Canada Agreement (USMCA) last summer, and President Donald Trump signed the deal in late January.
Finally, Canada passed the deal through its parliament in mid-March. The country faced some difficulty doing so; when the Liberals lost their majority in the October election, legislators on opposing sides had to work more closely together to get the legislation passed, as Conservatives had more oppositions to the deal.
The legislature was on winter recess while the bill made its way through U.S. Congress, and returned shortly before Trump signed the deal for the U.S.
The parliament worked to quickly pass the deal March 13, before taking a three-week recess to help stop the spread of the coronavirus. Opposition legislators dropped their objections and the parliament’s lower chamber agreed instant approval, even though the chamber still had weeks of deliberation left.
“(This) was entirely within the power of Canadian legislators to do, something we were able to do to help the Canadian economy at this challenging time, and I would like to thank legislators from all parties,” Deputy Prime Minister Chrystia Freeland told reporters.
The last step to enacting the deal is only a formality of having the governor-general sign the agreement.
“Now that the USMCA has been approved by all three countries, a historic new chapter for North American trade has begun,” U.S. Trade Representative Robert Lighthizer said in a statement.
“USMCA is a great victory for America’s agriculture industry, and I am pleased to see Canada’s Parliament approved the deal today.”
Lighthizer sent a letter to Congress a few days before Canada ratified the agreement, setting the date for USMCA to take effect as June 1.
However, the automotive industry had some concerns for the quick effect date.
“We are in the midst of a global pandemic that is significantly disrupting our supply chains, and the industry is throwing all available resources into managing production through this crisis,” U.S. and foreign automakers said in a letter. The groups also mentioned none of three countries had drafted uniform automotive rules-of-origin regulations.
Upon the announcement of the ratification, USDA Secretary of Agriculture Sonny Perdue said, “USMCA is a great victory for America’s agriculture industry, and I am pleased to see Canada’s Parliament approved the deal today. USMCA locks in and expands access to our neighbors to the North and South. I thank President Trump for negotiating this deal and for always supporting America’s farmers and ranchers. We will continue to work with both Canada and Mexico in implementing this agreement.” — Anna Miller, WLJ editor
