On December 19, 2019, the U.S. House of Representatives passed the USMCA with multiparty support with 385 votes (Democracy 193, Republican 192) to 41 (Democracy 38, Republican 2, Independent 1).  On January 16, 2020, the U.S. Senate passed the trade agreement by 89 votes (Democrats 38, Republicans 51) to 10 (Democracy 8, Republican 1, Independent 1) and the bill was forwarded to the White House for the signature of Donald Trump.  On January 29, 2020, Trump signed the agreement (Public Law No: 116-113).  NAFTA has been formally amended, but not the 1989 Canada-U.S. Free Trade Agreement, which is only “suspended.”   The USMCA will have an impact on the way Member States negotiate future free trade agreements. Section 32.10 requires USMCA countries to notify USMCA members three months in advance if they plan to enter into free trade negotiations with non-market economies. Article 32.10 authorizes USMCA countries to review new free trade agreements.
It is generally speculated that Article 32.10 targets China.  In fact, a senior White House official said of the USMCA agreement: “We were very concerned about China`s efforts to undermine the U.S. position by reaching agreements with others.”  In 1994, with the North American Free Trade Agreement (NAFTA), the United States, Mexico and Canada created the world`s largest free trade region that generated economic growth and helped improve the standard of living of the population in the three member countries. By strengthening trade and investment rules, this agreement has proven to be a solid foundation for building Canada`s prosperity and has provided a valuable example of the benefits of trade liberalization for the rest of the world. The new Canada-U.S.-Mexico agreement will strengthen Canada`s strong economic ties with the United States and Mexico. The main priority of the U.S. dairy industry in these negotiations was for Canada to eliminate its program, which allows cheap dairy products to underseed U.S. dairy products in Canada and in third-country markets.
As a result of the negotiations, Canada will eliminate so-called milk classes 6 and 7. In addition, Canada will apply export duties for its exports of skimmed milk powder, milk protein concentrates and infant formula in quantities above the agreed threshold, allowing U.S. producers to increase their sales abroad. The Canada-Mexico-U.S. trade agreement will officially enter into force on July 1. The USMCA is updating and replacing the 25-year-old North American Free Trade Agreement (NAFTA). Work on the new agreement took several years, had to be approved by both houses of Congress and required all three countries to certify that they were complying with the various measures of the agreement.