scholarly journals Novel Labour-related Clauses in a Trade Agreement: From NAFTA to USMCA

2020 ◽  
Vol 11 (3) ◽  
Author(s):  
Christoph Scherrer

The renegotiated North American Free Trade Agreement (NAFTA), now called the United States–Mexico–Canada Agreement (USMCA), contains two interesting innovations: the requirement of aminimum average wage in the manufacturing of motor vehicles (the Labour Value Content clause)and a detailed prescription for the reform of Mexican labour law. Both could serve as models forfuture labour chapters in trade agreements. The assessment contained in this article is based on theviews of those who demanded renegotiation of the labour-related provisions of NAFTA, expertson labour rights in free trade agreements (FTAs) and ethics criteria. The assessment results in asplit picture. The labour-related provisions came about under ethically problematic circumstancesand their complexity leaves much room for criticism. Yet, the idea of inserting a wage floor in anFTA, as well as monitoring and sanctioning mechanisms for ensuring internationally recognisedlabour rights, merits further consideration for future trade agreements.KEYWORDS: globalisation; industrial relations; competitiveness; trade agreements; outsourcing

2017 ◽  
Vol 111 ◽  
pp. 92-95
Author(s):  
Kathleen Claussen

These remarks are derived from a forthcoming work considering the future of international trade law. Compared with most features of the international legal system, the regional and bilateral trade law system is in the early stages of its evolution. For example, the United States is a party to fourteen free trade agreements currently in force, all but two of which have entered into force since 2000. The recent proliferation of agreements, particularly bilateral and regional agreements, is not unique to the United States. The European Union recently concluded trade agreement negotiations with Canada, Singapore, and Vietnam to add to its twenty-seven agreements in force and is negotiating approximately ten additional bilateral or multilateral agreements. In the Asia-Pacific Region, the number of regional and bilateral free trade agreements has grown exponentially since the conclusion of the Association of Southeast Asian Nations (ASEAN) Free Trade Area of 1992. At that time, the region counted five such agreements in force. Today, the number totals 140 with another seventy-nine under negotiation or awaiting entry into force. The People's Republic of China is negotiating half a dozen bilateral trade agreements at present to top off the sixteen already in effect. India likewise is engaged in at least ten trade agreement negotiations. The World Trade Organization (WTO) reports 267 agreements of this sort in force among its members as of July 1, 2016.


2005 ◽  
Vol 4 (2) ◽  
pp. 287-314 ◽  
Author(s):  
Christopher Dent

AbstractSince the late 1990s there has been a rapid proliferation of bilateral free trade agreement (FTA) projects in East Asia and the Asia-Pacific, regions previously largely devoid of FTA activity by comparison to others. As this trend has intensified, so have discussions on whether it will help advance regional co-operation and integration. This paper examines the nature of FTAs themselves and the main causes of East Asia and Asia-Pacific FTAs. The 'lattice regionalism' hypothesis is considered: whether dense economic bilateralism provides a sub-structural foundation on which economic regionalism (i.e. co-operation and integration) can build. Closely related is the issue of competing FTA models and modalities in the Asia-Pacific, and special attention is afforded to the 'asymmetric neoliberal' FTA model of the United States and the 'developmental–industrial' FTA model championed by Japan. It is argued that the contrasts between these make the emergence of an Asia-Pacific FTA unlikely in even the distant future. Japan's FTA model is also considered relative to perhaps East Asia's most important FTA project, the ASEAN–China FTA (ACFTA), and we discuss how bilateral FTA developments in the region more generally may or may not lead to enhanced regional economic co-operation and integration in East Asia.


Author(s):  
Juan Carlos Lara Gálvez ◽  
Alan M. Sears

This chapter discusses the impact of free trade agreements (FTAs) on intermediary liability in Latin America, with special emphasis on the Digital Millennium Copyright Act’s (DMCA) provisions that have been included into every bilateral FTA the United States has entered into since 2002, thus promoting their inclusion in the national law of other countries. However, these provisions are controversial, and whether they drive the internet economy or create a more restrictive online space is a matter of debate. This chapter analyses the impact of such provisions in Latin American countries and the state of their implementation in national jurisdictions. In particular, this chapter reviews implementation and proposed implementation of the DMCA model in Chile, Costa Rica and other CAFTA bloc countries, Colombia, and Peru. It also discusses the failure of the Trans-Pacific Partnership Agreement to create new intermediary liability rules and how the same language was ultimately included in the revision of the North American Free Trade Agreement (NAFTA), which became the US–Mexico–Canada Agreement (USMCA).


Author(s):  
Fabiani A Duarte ◽  
Fabiani A Duarte

By providing over $24 billion in foreign assistance to 154 countries, the United States was the largest economic and humanitarian aid donor in the world in 2008 (Schaefer, 2006; Tarnoff & Lawson, 2009). By viewing the U.S. government through this lens, U.S. free trade agreements (FTA), like U.S. foreign aid, assist economically-weaker countries to develop while advancing specific U.S. foreign policy initiatives. By analyzing NAFTA’s effects on Mexico’s economic growth and the provisions of the signed U.S.-Colombian Free Trade Agreement, this paper demonstrates the inefficiencies and unintended consequences of multilateral and bilateral FTAs. The analysis concludes by suggesting an alternative approach to proactive and productive economic development: regional economic FTAs. Keywords: free trade agreement (FTA), tariff, economic development program, foreign direct investment (FDI), internally displaced persons (IDPs), bilateral FTA, multilateral FTA, regional FTA


2009 ◽  
Vol 35 (S1) ◽  
pp. 147-167 ◽  
Author(s):  
ANN CAPLING ◽  
KIM RICHARD NOSSAL

AbstractStudents of regionalism almost reflexively include North America in their lists of regions in contemporary global politics. Inevitably students of regionalism point to the integrative agreements between the countries of North America: the two free trade agreements that transformed the continental economy beginning in the late 1980s – the Canada–US Free Trade Agreement that came into force on 1 January 1989, and the North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada, that came into force on 1 January 1994 – and the Secutity and Prosperity Partnership of North America (SPP), launched in March 2005. These agreements, it is implied, are just like the integrative agreements that forge the bonds of regionalism elsewhere in the world. We argue that this is a profound misreading, not only of the two free trade agreements of the late 1980s and early 1990s and the SPP mechanism of 2005, but also of the political and economic implications of those agreements. While these integrative agreements have created considerable regionalisation in North America, there has been little of the regionalism evident in other parts of the world. We examine the contradictions of North America integration in order to explain why North Americans have been so open to regionalisation but so resistant to regionalism.


Author(s):  
Chris Bachmann

Canada has recently made progress with several free trade agreements (FTAs), and although the government has carried out considerable analysis of their potential impact on the Canadian economy, little to no work has been done to assess the potential impact on Canada's transportation system. The objective of the research was to estimate the impacts of recent and forthcoming FTAs on Canada's domestic trade infrastructure. This study extended a typical computable general equilibrium simulation of an FTA by estimating high-level domestic supply chain characteristics (i.e., subnational region of origin or destination, sub-national region of exit or entry, international transportation mode, port of clearance) and by converting the resulting trade flows to freight flows measured in tonnage. The results indicate that the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) may have had large impacts on Canada's Continental and Atlantic Gateways, especially at the Port of Montreal, Quebec, as a result of trade creation with the EU. CETA also has had impacts on various crossings at the U.S. border as a result of trade diversion with the United States. Simulations, however, suggested that the Canada–Korea Free Trade Agreement has had relatively small impacts, mostly concentrated in the Asia-Pacific Gateway, particularly at the Port of Vancouver, British Columbia. Although the impacts were FTA-specific, this research demonstrated the need to consider FTAs in commodity forecasting and freight transportation planning, because they could make sizable changes to future freight flows on domestic transportation infrastructure.


Perceptions ◽  
2018 ◽  
Vol 4 (1) ◽  
Author(s):  
Alessandra Restifo

After the United States’ withdrawal from the Trans-Pacific Partnership (TPP), the world of free trade entered a free-for-all, as countries searched for a viable course of direction toward a new free trade agreement. Peru seems to be leading an organized effort for the development of free trade agreements both within Latin America and across the Pacific. This is not surprising, as an analysis of Peru’s economic history will demonstrate. Despite its social complications, free trade has usually led to prosperity for Peru. With it currently being one of Latin America’s fastest growing economies, the loss of the TPP grants Peru the opportunity to see if their endurance and success will continue as they become more internationally integrated. If Peru succeeds with its plans of expanding free trade, which is analyzed in this paper, the country may serve as a model for countries just embarking to participate in the world of free trade economic policy.


2019 ◽  
Vol 55 (3) ◽  
pp. 185-200
Author(s):  
Jürgen Wandel

Abstract A neglected aspect of regional trade agreements (RTAs) is their protectionist potential. In times of a stagnating World Trade Organization (WTO), growing economic nationalism and skepticism about the merits of free trade and trade agreements, the paper examines to what extent recently signed RTAs really promote genuine free trade or rather foster sneaky protectionism under the guise of free trade. For this, the paper proposes an ideal-type free trade agreement benchmark model based on a classical liberal perspective and applies it in a multiple case study approach to assess three cases of recently concluded mega-RTAs: the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the renegotiated North American trade agreement USCMA, and the Canada–European Union (EU) agreement CETA. The article shows that all of them are far from the classical liberal ideal of totally free trade and have a high content of back door protectionism suitable to raise trade barriers when politically opportune. In particular, the United States–Mexico–Canada Agreement (USMCA) includes many clear protectionist provisions that might even outweigh its liberalizing stipulations, whereas CPTPP and CETA can be deemed net liberalizing. It concludes that given political economy constraints, RTAs can nevertheless remain a second-best solution to the classical liberal ideals of completely unhampered trade and unilateral liberalization provided that they remove more impediments to free exchange than they cement or create.


2016 ◽  
Vol 5 (2) ◽  
pp. 395-418 ◽  
Author(s):  
Stephen R. Tully

Abstract This article identifies 8 key lessons for those States contemplating a free trade agreement with the United States (U.S.) arising from Australia’s experience. The standards of intellectual property protection under the Australia-U.S. Free Trade Agreement and their impact on pharmaceutical prices in Australia are a particular focus. Prospective parties must first conduct a national interest self-assessment which reviews the desired strength of intellectual property protection under national law and their preference for using flexibilities available to them under the existing international intellectual property rights framework. The United States negotiates free trade agreements in light of previous ones, negotiating outcomes obtained in other fora and the decisions of international trade tribunals. Negotiations typically occur behind closed doors, which is a process having adverse implications for transparent decision-making, public consultation periods and contributions from interested non-governmental actors. A concluded agreement will build on prior treaties and influence the course of future international arrangements. But the impact of a United States free trade agreement is not always clear, including because of a lack of reliable data, and the extent of national legal change is a contested issue given existing reform agendas and external influences. The United States seek to redesign national health care systems in its own image and had little success in Australia’s case. National legal systems need not be harmonised: although there can be some convergence in intellectual property rights regimes, significant differences may also remain. Negotiators must reconcile competing cultures, philosophies and perspectives between States for a free trade agreement to be worthwhile.


Author(s):  
Marta Migliorati ◽  
Valerio Vignoli

Abstract Since the Lisbon Treaty, the European Parliament (EP) has considerably increased its competencies in European Union (EU) trade policy. At the same time, a ‘new generation’ of free trade agreements (FTAs), including the Transatlantic Trade and Investment Partnership (TTIP) with the United States, Comprehensive Economic and Trade Agreement (CETA) with Canada, and the agreement with Japan, have been negotiated by the European Commission. Although existing literature has tackled the process of the EP's institutional self-empowerment in this policy area, there is no systematic research investigating the lines of conflict within the EP over FTAs. Through a newly collected dataset of all EP plenary debates between 2009 and 2019 on six relevant FTAs, we extract EP Members’ (MEPs) preferences by means of a manual textual analysis. We then test the explanatory power of the two traditional lines of cleavages within the EP over MEPs stated preferences: position on the left-right axis and support for EU integration. We find that both these dimensions fundamentally shape the conflict in the EP over FTAs. The impact of these two ideological cleavages is magnified in the context of politicized FTAs, namely the TTIP and CETA. Through these findings, the paper significantly contributes to the research on competition in the EP and, more broadly, to the understanding of EU trade policy and its emerging politicization dynamics.


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