Myth: USMCA
doesn’t improve protections for working Americans or curb companies from offshoring
jobs.
doesn’t improve protections for working Americans or curb companies from offshoring
jobs.
Facts: Unlike NAFTA, USMCA
has an enforceable chapter specifically dedicated to ensuring that all parties
maintain high labor standards. In particular, USMCA commits all parties to:
has an enforceable chapter specifically dedicated to ensuring that all parties
maintain high labor standards. In particular, USMCA commits all parties to:
·
protect the right of
workers to collectively bargain;
protect the right of
workers to collectively bargain;
·
prohibit forced
labor and employment discrimination;
prohibit forced
labor and employment discrimination;
·
protect workers
exercising their labor rights from violence;
protect workers
exercising their labor rights from violence;
·
enforce their respective
labor laws effectively – and not undermine them in order to encourage
investment or trade;
enforce their respective
labor laws effectively – and not undermine them in order to encourage
investment or trade;
·
guarantee workers
access to impartial and independent tribunals in order to enforce their labor
rights;
guarantee workers
access to impartial and independent tribunals in order to enforce their labor
rights;
·
apply labor law
protections to migrant workers; and
apply labor law
protections to migrant workers; and
·
encourage more production
of automobiles and auto parts in the United States by creating new rules of
origin that raise the amount of North American content that must be included in
an automobile, while also requiring 40-45 percent of auto content to be made by
workers earning at least $16 per hour.
encourage more production
of automobiles and auto parts in the United States by creating new rules of
origin that raise the amount of North American content that must be included in
an automobile, while also requiring 40-45 percent of auto content to be made by
workers earning at least $16 per hour.
USMCA also requires Mexico in particular to adopt new legislation
strengthening the ability of workers to effectively exercise their right to collectively
bargain. The landmark legislation that Mexico enacted in May 2019 as part of complying
with USMCA’s high labor standards establishes independent bodies to register
union elections and guarantees that workers can join the union of their choice.
strengthening the ability of workers to effectively exercise their right to collectively
bargain. The landmark legislation that Mexico enacted in May 2019 as part of complying
with USMCA’s high labor standards establishes independent bodies to register
union elections and guarantees that workers can join the union of their choice.
Myth: USMCA will raise
prescription drug prices and stop legislative efforts at addressing costs for
consumers.
prescription drug prices and stop legislative efforts at addressing costs for
consumers.
Facts: Nothing in USMCA will require or restrict any changes to U.S. laws on
intellectual property rights for pharmaceuticals or drug pricing – including
for biologic drugs.
intellectual property rights for pharmaceuticals or drug pricing – including
for biologic drugs.
- ·
Strong intellectual
property protections for pharmaceuticals are a key driver of the United States’
leadership in life-sciences innovation. They promote the creation of
transformative drugs for consumers. - ·
Under the Biologics
Price Competition and Innovation Act (BPCI), the United States already
provides 12 years of protection for biologics. Congress considered the
views of a number of experts in deciding to establish a 12-year term. BPCI had
broad bipartisan support and was signed into law by President Obama in 2010. - ·
USMCA requires a
minimum of 10 years of protection for biologic drugs, thus moving Canada
(presently 8 years) and Mexico (presently 5 years) closer to the United States. - ·
The European Union
also guarantees 10 years of exclusivity for biologic drugs – the same term as
USMCA. In fact, in 2011, a large bipartisan group of Congressmen noted in a letter to President Obama that it was critical to
preserve the U.S. term of 12 years precisely because, otherwise,
“[b]iotechnology companies will move overseas where other regulatory
environments, like the European Union, recognize the importance of fostering innovation.”
Myth: USMCA
makes no improvements to protect the environment.
makes no improvements to protect the environment.
Facts: Unlike NAFTA, USMCA has an
enforceable chapter dedicated to strengthening environmental protections. In particular, USMCA commits all parties to:
enforceable chapter dedicated to strengthening environmental protections. In particular, USMCA commits all parties to:
·
not weaken or waive
environmental law protections in order to encourage trade or investment;
not weaken or waive
environmental law protections in order to encourage trade or investment;
·
guarantee their citizens access to impartial
and independent tribunals in order to enforce their rights under environmental
laws;
guarantee their citizens access to impartial
and independent tribunals in order to enforce their rights under environmental
laws;
·
stop subsidies that contribute to the
destruction of fisheries, such as those that benefit illegal, unreported and
unregulated fishing;
stop subsidies that contribute to the
destruction of fisheries, such as those that benefit illegal, unreported and
unregulated fishing;
·
combat trafficking in wildlife, timber and
fish;
combat trafficking in wildlife, timber and
fish;
·
improve transparency and cooperation with
respect to air pollution; and
improve transparency and cooperation with
respect to air pollution; and
·
take measures to prevent and reduce marine
litter, including plastic litter and microplastics.
take measures to prevent and reduce marine
litter, including plastic litter and microplastics.
Myth: USMCA
would somehow reduce overall trade and investment between the United States,
Mexico and Canada, and drag down economic growth.
would somehow reduce overall trade and investment between the United States,
Mexico and Canada, and drag down economic growth.
Facts: The U.S. International Trade Commission, an independent agency, found
that USMCA “would likely have a positive impact on all broad industry sectors
within the U.S. economy,” and estimated it would raise U.S. real GDP by over
$68 billion and create nearly 175,000 jobs.
that USMCA “would likely have a positive impact on all broad industry sectors
within the U.S. economy,” and estimated it would raise U.S. real GDP by over
$68 billion and create nearly 175,000 jobs.
Myth: USMCA is just NAFTA by
another name, with no significant improvements over the status quo.
another name, with no significant improvements over the status quo.
Facts:
USMCA represents a substantial modernization
over NAFTA in a number of key respects. Once enacted, USMCA will:
USMCA represents a substantial modernization
over NAFTA in a number of key respects. Once enacted, USMCA will:
- ·
set
new standards for the 21st-century digital economy, including a ban on data
localization; - ·
expand access to
Canada’s heavily protected dairy, egg and poultry markets; - ·
establish, for the first
time in a trade agreement, rules to address currency manipulation; - ·
strengthen
intellectual property protections that are critical to ensuring that we reap
the full benefits of American innovation; - ·
cut red tape and
taxes for small businesses exporting to Canada and Mexico; and - ·
create a number of
good governance rules, including greater transparency in regulatory
development.