Question

Explain relationship between Canada and USA in lumber industry under USMCA agreement in detail.

Answer 1

As we know that USA is the most developed country of the world. In terms of GDP the US ranks first. It has close relations with the Canada in terms of trade and other relations. USMCA stands for United states, Mexico, Canada and agreement. USMCA is not just a modernized update to NAFTA but it borrows heavily from the TPP and CPTPP trade agreements; it also contains new elements regarding stringent, enforceable and binding labor and environmental elements in the core of the agreement, macroeconomic policy, standard and regulations harmonization. The Agreement is the result of a 2017–2018 renegotiation of the North American Free Trade Agreement (NAFTA) by its member states, which informally agreed to the terms on September 30, 2018, and formally on October 1. The USMCA was proposed by United States President Donald Trump and was signed by Trump, Mexican President Enrique Peña Nieto, and Canadian Prime Minister Justin Trudeau on November 30, 2018, as a side event of the 2018 G20 Summit in Buenos Aires. A revised version was signed on December 10, 2019, and was ratified by all three countries, with the final ratification (Canada) on March 13, 2020.

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