The new United States-Mexico-Canada (USMCA) agreement, signed on Tuesday, will benefit Canada thanks to amendments made by U.S. Democrats which strengthened labour regulations and other standards.
The agreement, Trump’s replacement for NAFTA, is very similar to the old trade agreement, with a few changes that Canada could not have made on its own. In spite of fears that NAFTA would be dissolved under Trump, the original agreements have been largely preserved under the new USMCA.
One of the more significant updates for Canada will be reduced patent times on pharmaceuticals, which will in turn reduce prices for prescription drugs. An amendment to reduce panel blocking is another new positive outcome, which will mean that countries can’t refuse to appoint panelists in an effort to avoid resolving disputes. New mechanisms for overseeing labour standards will also mean greater protection for workers in Mexico. The agreement hasn’t been cleared by the American Senate yet, since Trump’s impeachment hearing will take priority.