USITC releases report assessing likely impact of USMCA

The U.S. International Trade Commission, USITC, released its report assessing the likely impact of the United States-Mexico-Canada Agreement, USMCA, that the President entered into with Mexico and Canada on November 30, 2018. The elements of the agreement that would have the most significant effects on the U.S. economy are provisions that reduce policy uncertainty about digital trade and certain new rules of origin applicable to the automotive sector. Of interest to stakeholders in many sectors, particularly services industries, are USMCA's new international data transfer provisions, including provisions that largely prohibit forced localization of computing facilities and restrictions on cross-border data flows. Industry representatives consider these provisions to be a crucial aspect of this agreement in terms of changing certain rules of trade across industry sectors, especially given the lack of similar provisions in the North American Free Trade Agreement, NAFTA. Because NAFTA has already eliminated duties on most qualifying goods and significantly reduced nontariff measures, USMCA's emphasis is on reducing remaining nontariff measures on trade and the U.S. economy; addressing other issues that affect trade, such as workers' rights; harmonizing regulations from country to country; and deterring certain potential future trade and investment barriers. Reference Link

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