NAFTA chapter | Changes | How Canada and B.C. benefit, according to TD economists |
Rules of Origin | Requires 75% of auto content to be made in the U. S. and Mexico | The augmented rules of origin for the auto industry are considered a win for manufacturers located in higher-cost jurisdictions such as Canada. |
Requires 40% to 45% of auto content be made by people earning at least $16 per hour. | Consumers are likely to be the losers as higher cost of parts and assembly will likely be passed on. | |
Stronger enforcement on rules of origin. | This should make for an easy hurdle for Canadian manufacturers to clear, with a large share of U.S. and Canadian manufacturing facilities (and products) already meeting these new requirements. | |
Sunset Clause | The agreement will be reviewed every six years. At that time, if one or more parties expresses a desire to alter the trade pact, there would be a ten-year window to resolve issues before the agreement would end. | Concerns about the sunset clause were rooted in fears that it would discourage long-term investment in Canada, particularly affecting the energy industry. |
Intellectual property | Strengthened intellectual property laws to the U.S. standards of 75-year copyright and 10-year data protection for biologicals. | May be deemed as a threat to certain Canadian industries, such as the thriving Canadian generic pharmaceuticals industry. |
Goods Market Access | Adds new provisions for transparency around import and export licensing. | |
Prohibits requirements to use local distributors for importation. | ||
Prohibits restrictions on used and remanufactured goods. | ||
Textiles | Promotes greater U,S, and Mexican production of textiles and apparel. | |
Limits use of non-NAFTA inputs and requiring that thread, elastic bands, coated fabrics and other inputs be made in the region to qualify for trade benefits. | ||
Establishes textile chapter for U.S.-Mexico trade |