WT/REG407/M/1  
 
8 November 2021 
(21-8457) Page: 1/4 
Committee on Regional Trade Agreements  
Hundred and first  Session    
 
 
AGREEMENT BETWEEN THE UNITED STATES, MEXICO AND CANADA 
(USMCA/CUSMA/T -MEC) (GOODS AND SERVICES ) 
NOTE ON THE MEETING OF  1 NOVEMBER  2021 
Ambassador H.E. Dr. Cleopa Kilonzo MAILU (Kenya)  
1.1.  The 101st Session of the Committee on Regional Trade Agreements (hereinafter  "CRTA " or the 
"Committee ") was convened in Airgram WTO/AIR/RTA/ 26 dated 20 September  2021. 
1.2.  Under Agenda Item C.II of the Session, the CRTA considered the Agreement between the 
United State s, Mexico and Canada (USMC/CUSMA/T -MEC), goods and services (hereinafter "the 
Agreement"). The Chairman  stated that the Factual Presentation had been prepared by the 
Secretariat on its own responsibility in full consultation with the Parties, in accordance  with 
paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document 
WT/L/671).  
1.3.  The Chairman  indicated that the Agreement had entered into force on 1 July 2020. It had been 
notified on 16 September 2020 under Article  XXIV:7(a) of the GATT  1994 and GATS  Article  V:7(a) 
(documents WT/REG407/N/1 and S/C/N/1017) as an agreement on trade in goods within the 
meaning of Article XXIV of the GATT 1994 and for trade in services within the meaning of Article V 
of the GATS, respectively . The text of the Agreement and its Annexes was available on Parties' 
official websites  and in the WTO RT A database . The Factual Presentation on the goods and services 
aspects of the Agreement (document  WT/REG407/1 dated 23 August  2021) and questions and 
replies on this Agreement (document WT/REG40 7/2 dated 2 6 October  2021) had been distributed.  
1.4.  The represen tative of Canada , on behalf of all three Parties to the Agreement, thanked the 
participants for their presence, and for their questions and the interest shown in the new agreement 
between the United States, Mexico and Canada, which the Parties had respecti vely named USMCA, 
T-MEC and CUSMA.  
1.5.  He recalled that, o n November 30, 2018, Canada, the United States, and Mexico had signed 
an agreement to replace the North American Free Trade Agreement (NAFTA/ALENA/TLCAN) with the 
Agreement between the United States, M exico, and Canada (USMCA/CUSMA/T -MEC).  
1.6.  Subsequently, on December 10, 2019, Canada, the United States and Mexico had agreed to 
update certain elements of the new Agreement to improve the final outcome and clear the path 
toward its ratification and implement ation in all three countries.  
1.7.  The Agreement that had come into force on July 1, 2020, reinforce d the strong economic ties 
between the three countries.  
1.8.  The objectives sought while negotiating the new pact was duly reflected in the Agreement 's 
preamble, and include d to: 
• strengthen anew the longstanding friendship between the Parties and their peoples, and 
the strong economic cooperation that ha d developed through trade and investment;  
• preserve and expand regional trade and production by further incentivizing the production 
and sourcing of goods and materials in the region;  WT/REG407/M/1  
 
- 2 - 
 
  • enhance and promote the competitiveness of regional exports and firms in global markets, 
and conditions of fair competition in the region;   
• establish a clear, transparent, and predictable legal and commercial framework for business 
planning, that support ed further expansion of trade and investment;  
• recognize the importance of increased engagement by indigenous peoples in trade and 
investment; and  
• seek to facilitate women 's and m en's equal access to and ability to benefit from the 
opportunities created by this Agreement and to support the conditions for women 's full 
participation in domestic, regional, and international trade and investment.  
 
1.9.  The Agreement promote d fair trade and expanded market access, strengthen ed disciplines to 
reflect the 21st century economy and combat ed non-market practices.  Moreover, the Agreement had 
maintain ed the tariff -free market access from NAFTA/ALENA/TLCAN , which had eliminated virtually 
all tariffs  between Canada, the United States, and Mexico, with very few exceptions. The new 
Agreement had maintain ed, and expand ed, these benefits and ensure d that the vast majority of 
North American trade would  continue to be duty -free. Additionally, a new chapter o n customs 
administration and trade facilitation had standardize d and modernize d customs procedures 
throughout North America to facilitate the free flow  of goods.  The Agreement also include d updates 
and new chapters to reflect modern -day realities of trade, such as a new chapter on digital trade. It 
also contain ed disciplines related to non -market practices, with new provisions on state -owned 
enterprises, anti -corruption, and currency manipul ation. The Agreement provide d key outcomes for 
businesses, workers, and communities, and importantly, also include d a new chapter on small and 
medium -sized enterprises, and language on gender and Indigenous peoples ' rights.  
1.10.   He further mentioned that t he Ag reement had expand ed the agriculture  commitments 
between Mexico, the United States, and Canada,  and help ed bring together an already highly 
integrated North American industry.  Revised automotive rules of origin  require d higher levels of 
North American cont ent in order to incentivize production and sourcing in North America. More 
robust rules of origin for the auto sector would help  keep the benefits of the Agreement in North 
America and diminish incentives to make investment and sourcing decisions based on the availability 
of low -cost labour . 
1.11.   He stated that t he Agreement  had improve d the state -to-state dispute settlement  process of 
NAFTA/ALENA/TLCAN to ensure that arbitral panels were formed to hear disputes and that the 
process was carried out in a transpar ent and expedient manner.  
1.12.   The Agreement include d a comprehensive chapter on labour , which was subject to dispute 
settlement. It aimed to level the playing field on labour  standards and working conditions in North 
America by ensuring  the parties did not low er their levels of protection to attract trade or investment. 
It also contain ed a ground -breaking new provision that prohibit ed trade in goods made using forced 
labour . To address labour  violations related to collective bargaining and freedom of associatio n in a 
timely manner, the Agreement also include d innovative rapid response mechanisms. These 
enforcement mechanisms allow ed for the rapid deployment of a three -member panel of labour  
experts to a facility to ensure that workers were not denied the right to free association and collective 
bargaining.  
1.13.   The Agreement include d a comprehensive environment  chapter, which was subject to dispute 
settlement and aim ed to level the playing field by ensuring the Parties did not lower their levels of 
environmental protection to attract trade or investment. It also advance d environmental protection 
with new, enforceable commitments to safeguard terrestrial and marine environments from 
environmental c hallenges and threats, including wildlife trafficking, illegal logging and fishing, air 
pollution, and marine litter.  It also provide d for enhanced public participation, strengthened 
coordination among North American environment and enforcement agencies, a nd enhanced trilateral 
environmental cooperation.  
1.14.   He also noted  that t he Agreement inc luded  several gender -related provisions, including new 
labour  provisions which require d the Parties to implement policies that protect against employment 
discrimination based on gender.  The Agreement also include d a general exception related to the 
rights of Indigenous peoples . WT/REG407/M/1  
 
- 3 - 
 
  1.15.   He confirmed that p rovisions governing trade in energy  could  be found across the modernized 
Agreement. This include d disciplines and provisions in  the areas of national treatment and market 
access, rules of origin, customs and trade facilitation, and cross -border trade in services and 
investment.  
1.16.   An updated, comprehensive chapter on intellectual property (IP), included  obligations on 
copyright and r elated rights, trademarks, geographical indications, industrial designs, patents, data 
protection for pharmaceutical and agricultural chemical products, trade secrets and intellectual 
property  rights enforcement.  
1.17.   He indicated that t he Agreement include d a requirement for a formal review  at least every six 
years after entry into force. This innovative review process would  help ensure  that the Agreement 
remain ed relevant, effective and beneficial for North American workers. It would  also help address 
issues before they bec ame major challenges and  provide d predictability and stability for North 
American consumers and businesses.  
1.18.   On implementation, h e stated that, 16 months after the Agreement 's entry into force, the 
Parties continue d to work on its effective implementation. The Parties had  held a meeting of the 
Agreement 's Free Trade Commission on 18 May 2021  and in concluding that meeting, had recognized 
that trad e policies should foster broad -based and equitable growth, spur innovation, protect their 
shared environment, and have a positive impact on people from all walks of life. To accomplish this, 
Canada, the United States, and Mexico recommitted  to fully implem enting, enforcing, and fulfilling 
the Agreement 's terms and high standards throughout the life of the Agreement.  He informed the 
Committee that t he Ministers had reviewed the work already underway at the time to advance the 
Parties'  cooperation under the A greement. Despite the challenges and hardships of the COVID -19 
pandemic, committees established under the Agreement  had convened virtually since the entry into 
force of the Agreement  on 1 July 2020. Ministers  had directed the committees to explore new 
approaches to better engage with underrepresented communities on trade issues so that the 
Agreement could  best advance equity and opportunities for all stakeholders and to ensure that North 
America remain ed the most competitive region.  Canada, the United State s, and Mexico had 
discussed their shared obligation to ensure the Agreement 's prohibition o n import s of goods 
produced by forced labour and  had recommitted to working closely to promote a fair, rules -based 
international trading system where products made w ith forced labour  did not enter the trading 
system.  The Parties had also affirmed their shared goal of full implementation of the Agreement 's 
environmental obligations and continued engagement to address the most pressing environmental 
challenges in North America, recognizing that a healthy environment was an integral element of 
sustainable development and economic prosperity.  
1.19.   He thank ed the C ommittee  once again for the interest shown in the new agreement between 
Mexico, Canada and the United States  and would be happy to answer any additional questions . 
1.20.   The representative of  the European Union  welcome d the Agreement. She wished the Parties 
success in the implementation of the Agreement.  She noted  that t he Agreement update d the NAFTA 
in several respects, including on sustainability issues, labour and environment, agriculture and 
intellectual property, digital trade, anticorruption, good regulator y practices, small and medium sized 
enterprises. This reflect ed the trend and content of recent EU FTAs, for example of its agreements 
with Japan, and the update of the agreement with Mexico.  While the Agreement seem ed 
trade -creating in most instances, the European Union was  concerned by possible negative effects on 
EU trade and investment with USMCA partners. In particular, the EU noted that the Agreement had 
a restrictive approach in the application of the rules of origin, especially with regard to the 
automotive sector. This tightening affect ed supply chains and transatlantic value chains in a 
globalised industrial sector, essential to the economies of all partner s and  the European Union  would  
carefully monitor this aspect.  
1.21.   The Chairman  noted that the consideration of the Goods and Services Aspects of the 
Agreement between the United States, Mexico and Canada (USMC/CUSMA/T -MEC) had allowed the 
Committee to clarify a number of questions and conclude oral discussion of this RTA in accordan ce 
with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow -up 
questions were invited to forward submissions in writing to the Secretariat by 8 November 2021 and 
the Parties were asked to submit replies in writing by no later than 22 November 2021. In accordance 
with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of WT/REG407/M/1  
 
- 4 - 
 
  this meeting would be circulated promptly, in all WTO official languages, and made available on the 
WTO website.  
1.22.   The Committee took note  of the comments made.  
__________