The Canada-United States-Mexico Agreement (CUSMA) was signed in November 2018, replacing the North American Free Trade Agreement (NAFTA) that governed trade between the three countries for over 25 years. CUSMA was designed to modernize NAFTA and strengthen the economic ties between the three nations. Since its implementation, there has been a lot of discussion about how CUSMA will impact the economy of North America. In this article, we will take a closer look at the economic impact assessment of CUSMA.
The International Trade Commission (ITC) conducted an economic impact assessment of CUSMA in early 2019 to determine its potential effects on the U.S. economy. The assessment found that CUSMA would increase U.S. gross domestic product (GDP) by 0.35% and create 176,000 new jobs. The ITC also found that the agreement would benefit the U.S. agricultural and manufacturing sectors, as well as the services industry.
Similarly, the Mexican government conducted its own economic impact assessment of CUSMA. They found that the agreement would increase Mexico`s GDP by 1.2% and create 590,000 new jobs over the next 15 years. The assessment also highlighted that CUSMA would help to diversify Mexico`s economy and increase foreign investment.
Canada has not released an official economic impact assessment of CUSMA, but some economists predict that the agreement will have a positive impact on their economy. They believe that CUSMA will increase Canadian exports to the U.S. and Mexico, which will boost economic growth and create new jobs.
Despite the positive economic impact assessments of CUSMA, some experts have expressed concerns about specific aspects of the agreement. For example, the automotive rules of origin have been a topic of debate, with some experts warning that they could increase production costs and decrease competitiveness in the industry.
Additionally, the agreement includes provisions related to intellectual property, digital trade, and labor practices. Some experts have raised concerns about the potential effects of these provisions on businesses and workers.
In conclusion, the economic impact assessment of CUSMA has been largely positive, with estimates of increased GDP and job creation across the three nations. However, some concerns have been raised about specific aspects of the agreement. As CUSMA continues to be implemented, it will be important to monitor its effects on the economy and adjust policies as needed to ensure that it benefits all parties involved.