The Biggest and Most Current Trade Agreement between Mexico and Canada (Essay Sample)

The Biggest and Most Current Trade Agreement between Mexico and Canada

Canada, Mexico, and the United States are known for their joined trade agreements aimed toward better economic sustainability. The US- Mexico- Canada Agreement (USMCA) is an example of a trade agreement between these countries, effective in July 2020. Nonetheless, the two former states have individual trade agreements with the US. The trade agreements continuously fluctuated from various factors such as Covid-19.
Some trade agreements between Canada and the US include TISA, CUSFTA, and the Roadmap for a Renewed US-Canada Partnership. The recent Canada- United States Free Trade Agreement (CUSFTA) is broader in range as it offers liberalization in significant sectors of the economy, such as agriculture. Compared to other trade agreements, it provides rules that deal with subsidies and countervailing measures. In addition, it recognizes its foundations based on precedents and obligations between the US and Canada. Key elements of the Agreement include tariff elimination, dispute settlements, and disruption of non-tariff barriers.
Similarly, the TISA (Trade in Services Agreement), is a services-trade-only agreement with several World Trade Organization members (WTO) members, including Canada and the US. In 2018, Canada’s services exports on the Agreement’s market were $102.4 billion, 17% of Canada’s service exports. Therefore, Canada is vital in the Agreement’s negotiations since it can address market access concerns with significant trading partners such as the US.
Another trade agreement example is the Roadmap for a Renewed U.S-Canada Partnership. The respective heads of state launched the partnership in February 2021 to lay out a competitive framework for better economic futures for both countries. It also aims to combat Covid-19 and create safer and equal opportunities for the people. The trade agreements facilitate the establishment of embassies in both countries for better trading and interactions.
On the other hand, Mexico also has trade agreements with the US. The International boundary and water Commission (IBWC) is a trade agreement that manages various water resources and preservation concerns. The IBWC works closely toward distributing portions of water from two distinct rivers in each state, per the stipulated treaty.
The U.S-Mexico Bilateral on Higher Education, Innovation, and Research (FOBESII) have been a bilateral government initiative since 2014. Such a forum helps Mexico and the United States develop a modern workforce for mutual economic and social sustainability. It extends opportunities for scientific research cooperation, educational interactions, and cross-border improvements.