American foreign policy is really geared towards globalization and
a rules based order. Globalization is
the idea wherein countries transcend influence beyond their borders. It is the concept of globalization that
allows countries to increase their revenue through trade. A rules-based order on the other hand refers
to the abiding by the concept of the rule of law. There are two types of law first is
conventional and second is codified.
Conventional law refers to, “law constituted by agreement as having the force
of special law between the parties[1]”
while codified law means Codified law is statutes and regulations[2]. With this said, it
becomes increasingly important that America continue to negotiate within its
continental territory. Through these
negotiations, USA, Mexico and Canada promote globalization and enforce the rule
of law within the continent. Therefore,
America acts in the interest of itself while giving Mexico and Canada a fair
trade deal.
The USMCA trade deal is a deal that is codified between the USA
Mexico and Canada. It is a continuation
of the NAFTA or the North American Free Trade Agreement enacted since 1994[3]. The USMCA trade deal addresses multiple
issues that concern the involved parties.
First it addresses finance. There
are provisions to prevent discrimination against US financial service
suppliers. This means that US financial
service providers receive the same treatment as local providers[4]. Thus, the US finance is given market access
within Mexico and Canada. Clearly this
is a benefit for the USA as it will allow them to conduct financial trade
beyond their border. This will certainly
make the USA more competitive in the international stage as the dollar
dwindles.
Next, the USMCA addresses labour.
It is done by the creation of the ILO or the International Labour
Organization. This organization enforces
the conformity to labour standards within continental North America[5]. The USMCA has provisions to support North
American jobs. It seeks higher salaries
for auto workers by specifying that these people be given a salary of at least
$16.00/ hour[6]. Manufacturing is more affordable in
Mexico. There have been numerous vehicle
companies that have sought labour in Mexico because of the benefit of cheap
labour. For example, Mercedes Benz,
although not American, contracts companies to produce cars for them in
Mexico. The point here is that, Mexico
is attracting foreign auto makers because of affordable labour. With salaries increasing to $16/ hour, it is
a good thing for these workers however, these foreign auto makers such as the
one mentioned can be put off and go to other continents such as Asia. The benefit of conducting such business in
Mexico is that the country already has the infrastructure to create this type
of product. Further, they have the
skilled people with the intel on how to manufacture vehicles. This is the competitive edge that Mexico
provides that others will be hard pressed to replicate. Nevertheless, the USMCA clearly supports
labour and seeks to protect the car industry within the continent of North
America.
Lastly, The USMCA has provisions to protect the environment. The environment is a key component of the USMCA because it allows continental North America to not only have flourishing cities but also to protect the endangered natural habitats within the continent. The USMCA fights the trafficking of wildlife. This is important because there are certain wildlife that are only found in North America. Such is the case with the Canis Lupus a type of grey wolf. By protecting these animals, North America achieves the maintenance of biodiversity within its continent. Air quality is a major issue that is also addressed by the trade deal. Currently there are massive problems with air pollution in countries such as China and India. In fact, India has one of the worst cases of poor air quality. This is a result of industrialization and manufacturing. This manufacturing causes pollutants to be spread in the air which can therefore affect the health of citizens. The USMCA seeks to improve the air quality in continental North America[7]. Finally, the USMCA has provisions to protect fish and timber. The industries involving these two raw resources are worth $246 billion in annual revenues (fish)[8] and $127.7 billion in 2018-19[9] (timber). Canada is a main producer of both natural resources. This is really a win for the Canadians as these industries in that country are very active. In fact, Canada sold 595.01 million Canadian dollars in the third quarter of 2020 of fish and seafood[10]. As for lumber, “Canada produced some 65.6 million cubic meters of softwood and hardwood lumber[11]" in 2018.
As it becomes evident, the USMCA benefits all three countries. Each country has something to gain from this trade agreement. As mentioned, the objective of this trade agreement is to promote globalization and a rules based order. Through this agreement the USA brings Mexico and Canada with them in transcending national borders and increasing the competitiveness of North America around the globe.
[1] Legal Lingo. “Conventional Law” (2021). Retrieved from: https://www.legal-lingo.net/conventional-law/
[2] Los Angeles
Criminal Defense Firm, “Codified Law” (2021).
Retrieved from: https://www.lacriminaldefenseattorney.com/legal-dictionary/c/codified-law/
[3]
Investopedia. “North American Free Trade
Agreement (NAFTA)” (2021). Retrieved
from: https://www.investopedia.com/terms/n/nafta.asp
[4] Norton
Rose Fulbright. “The USMCA- Impact on
the financial sector” (2018). Retrieved
from: https://www.nortonrosefulbright.com/en/knowledge/publications/5dde68a0/the-usmca---impact-on-the-financial-services-sector
[5] Bureau of
International Labour Affairs. “Labour
Rights and the United States – Mexico- Canada Agreement (USMCA)” (2021). Retrieved from: https://www.dol.gov/agencies/ilab/our-work/trade/labor-rights-usmca
[6] Ross Pink. “American Foreign Policy” Kwantlen Polytechnic University (2020).
[7] Ross Pink. “American Foreign Policy” Kwantlen
Polytechnic University (2020).
[8] CBC. “Fisheries worth 246Bn worldwide.” (2010). Retrieved from: https://www.cbc.ca/news/technology/fisheries-worth-246b-worldwide-1.962663#:~:text=Fisheries%20around%20the%20globe%20generate%20a%20whopping%20%24246,industries%20linked%20to%20the%20lucrative%20but%20fragile%20resource.
[9]
Camion. “Recent and emerging trends in
Forestry and Lumber” (2019). Retrieved
from: https://www.camoinassociates.com/recent-and-emerging-trends-forestry-and-lumber
[10]
Statista. “Quarterly retail sales of
fresh fish and other seafood in Canada 2014-2020.” (2021).
Retrieved from: https://www.statista.com/statistics/471325/quarterly-retail-sales-of-fresh-fish-and-other-seafood-canada/
[11] Statista. “Lumber production in Canada 2004-2018.” (2020).
Retrieved from: https://www.statista.com/statistics/377249/production-of-lumber-in-canada/
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