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CANADA AND INTERNATIONAL AFFAIRS

NAFTA 2.0
From the first NAFTA to the
United States-Mexico-Canada Agreement

Edited by
Gilbert Gagné
Michèle Rioux
 Canada and International Affairs

Series Editors
David Carment, NPSIA, Carleton University, Ottawa, ON, Canada
Philippe Lagassé, NPSIA, Carleton University, Ottawa, ON, Canada
Yiagadeesen Samy, NPSIA, Carleton University, Norman Paterson,
Ottawa, ON, Canada
Palgrave’s Canada and International Affairs is a timely and rigorous series
for showcasing scholarship by Canadian scholars of international affairs
and foreign scholars who study Canada’s place in the world. The series
will be of interest to students and academics studying and teaching Cana-
dian foreign, security, development and economic policy. By focusing on
policy matters, the series will be of use to policy makers in the public and
private sectors who want access to rigorous, timely, informed and inde-
pendent analysis. As the anchor, Canada Among Nations is the series’
most recognisable annual contribution. In addition, the series show-
cases work by scholars from Canadian universities featuring structured
analyses of Canadian foreign policy and international affairs. The series
also features work by international scholars and practitioners working in
key thematic areas that provides an international context against which
Canada’s performance can be compared and understood.

More information about this series at

https://link.springer.com/bookseries/15905
 Gilbert Gagné · Michèle Rioux
Editors

NAFTA 2.0
From the first NAFTA to the United
States-Mexico-Canada Agreement
Editors
Gilbert Gagné Michèle Rioux
Politics and International Studies Succursale Centre-Ville
Bishop’s University UQAM - Universite Du Quebec A
Sherbrooke, QC, Canada Montreal
Montreal, QC, Canada

ISSN 2523-7187 ISSN 2523-7195 (electronic)

Canada and International Affairs
ISBN 978-3-030-81693-3 ISBN 978-3-030-81694-0 (eBook)
https://doi.org/10.1007/978-3-030-81694-0

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Switzerland AG 2022
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights
of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and
retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc.
in this publication does not imply, even in the absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore free for
general use.
The publisher, the authors and the editors are safe to assume that the advice and informa-
tion in this book are believed to be true and accurate at the date of publication. Neither
the publisher nor the authors or the editors give a warranty, expressed or implied, with
respect to the material contained herein or for any errors or omissions that may have been
made. The publisher remains neutral with regard to jurisdictional claims in published maps
and institutional affiliations.

Cover illustration: Lucidio Studio, Inc./Alamy Stock Photo

This Palgrave Macmillan imprint is published by the registered company Springer Nature
Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
 To the memory of our mothers

Rita Gazé (1935–2016)

—Gilbert Gagné

Marie-Jeanne Rioux (1932–2016)

—Michèle Rioux
 Preface

The idea of this book follows on two seminars entitled “Read and
Understand NAFTA 2.0” held at the Université du Québec à Montréal
(UQAM) (University of Quebec in Montreal) in February 2019. Orga-
nized jointly by the Groupe de recherche sur l’intégration continentale
(GRIC) (Research Group on Continental Integration) and the Centre
d’études sur l’intégration et la mondialisation (CEIM) (Centre for the
Study of Integration and Globalization), both based at UQAM, the semi-
nars grouped 12 academics and doctoral students from five of Quebec’s
universities, including the Centre d’études pluridisciplinaires en commerce
et investissements internationaux (Centre for Interdisciplinary Studies in
International Trade and Investment) at Université Laval (Laval Univer-
sity). Gilbert Gagné and Michèle Rioux, directors of the GRIC and
CEIM, respectively, later decided to build on the seminars and to co-edit
a book on the renegotiation of the North American Free Trade Agree-
ment (NAFTA). Together with the two editors, nearly all participants in
the seminars are contributors to the book. Further experts were solicited,
as to cover (nearly) all key aspects of what is now known as the United
States–Mexico–Canada Agreement (USMCA).
Tracing its origins to the late 1980s, the GRIC, since 1994, has been at
the forefront of the study of free trade and economic integration in North
America and, beyond, in the Americas. Long led by Dorval Brunelle and
Christian Deblock, and since 2003 by G. Gagné, the GRIC has stood out
through its publications and collaborations with various research teams

vii
viii PREFACE

sharing similar interests. Since 2000, the GRIC has been a unit of the
larger CEIM, led until 2018 by C. Deblock and, since then, by M. Rioux.
For now more than 20 years, the GRIC and CEIM have joined efforts in
training graduate students in the study of economic integration processes
in North America and the world, as well as in furthering the under-
standing of such processes among academics, government officials, trade
union groups, and interested citizens.
For more on GRIC, consult its website: gric.uqam.ca.
For more on CEIM, consult its website: ceim.uqam.ca.
Our first thanks go to the authors: academics, legal experts, and grad-
uate students, whose expertise was essential to analyze various, often
complex, dimensions of the USMCA and their key advances/retreats from
NAFTA. Thanks are also due to Éric Boulanger and Nicholas Demanche,
who have worked on the formatting of the manuscript. We are as well
grateful to the anonymous reviewers of the book manuscript for their
comments and suggestions, and to the staff at Palgrave, in particular Anca
Pusca, whose help has been much appreciated throughout the process
leading to the publication of the book. The realization of the book has
finally been facilitated by a grant from the Fonds de recherche Société et
culture, Québec under the Research Team Support program. We also
acknowledge the financial support received from Bishop’s University and
UQAM.
 PREFACE ix

Sherbrooke, Canada Gilbert Gagné

Montreal, Canada Michèle Rioux
April 2021
 Contents

1 Introduction 1
Gilbert Gagné and Michèle Rioux
2 Ratification and Implementation
of the United–States–Mexico–Canada Agreement
(USMCA) 19
Erick Duchesne
3 Canadian Federalism and International Trade:
Ontario and Quebec’s Role in the Negotiation
of USMCA/CUSMA/T-MEC 31
Stéphane Paquin and Laurence Marquis
4 Canada’s New Dairy Obligations Under USMCA
and the Associated Implications for Canadian Dairy
Producers and Processors 49
Geneviève Dufour and Michelle Hurdle
5 Make America Great Again: A New Auto Pact
for the North American Car Industry? 65
Mathieu Arès and Charles Bernard
6 The USMCA and Investment: A New North American
Approach? 81
Charles-Emmanuel Côté and Hamza Ali

xi
xii CONTENTS

7 Digital Trade 99
Gilbert Gagné and Michèle Rioux
8 Intellectual Property 109
Nathaniel Lipkus and Madison Black
9 From the NAFTA to the USMCA: Competition,
Monopolies and State-Owned Enterprises 127
Michèle Rioux
10 The USMCA: A “New Model” for Labor Governance
in North America? 139
Sandra Polaski, Kimberly A. Nolan García,
and Michèle Rioux
11 NAFTA and the Environment: Decades of Measured
Progress 157
Noémie Laurens, Zachary Dove, Jean-Frédéric Morin,
and Sikina Jinnah
12 Canada and International Regulatory Cooperation:
A Comparison of USMCA, CETA and CPTPP 181
Christian Deblock
13 Settlement of State-To-State and Unfair Trade
Disputes Under the USMCA 199
David A. Gantz
14 Macroeconomic Policies and Exchange Rate Matters 215
Delphine Ducasse, Micheline B. Somda, and David Pavot
15 Exceptions, General Provisions, the Review and Term
Extension Clause 227
Richard Ouellet
16 The Treatment of Cultural Products and the Cultural
Exemption Clause 243
Gilbert Gagné
17 Conclusion—NAFTA’s Impacts: Can the USMCA Do
Better? 261
Michèle Rioux, Sandra Polaski, and Gilbert Gagné

Index 277
 List of Contributors

Hamza Ali Faculty of Law, Université Laval, Quebec City, Canada

Mathieu Arès School of Applied Politics, Université de Sherbrooke,
Sherbrooke, Canada
Charles Bernard School of Applied Politics, Université de Sherbrooke,
Sherbrooke, Canada
Madison Black Osler, Hoskin & Harcourt LLP, Toronto, ON, Canada
Charles-Emmanuel Côté Faculty of Law, Université Laval, Quebec
City, Canada
Christian Deblock Department of Political Science, Université du
Québec à Montréal, Montréal, QC, Canada
Zachary Dove Politics Department, University of California, Santa
Cruz, CA, USA
Delphine Ducasse Faculty of Law, Université de Sherbrooke, Sher-
brooke, QC, Canada
Erick Duchesne Department of Political Science, Université Laval,
Quebec, QC, Canada
Geneviève Dufour Faculty of Law, Université de Sherbrooke, Sher-
brooke, Canada

xiii
xiv LIST OF CONTRIBUTORS

Gilbert Gagné Department of Politics and International Studies, Bish-

op’s University, Sherbrooke, QC, Canada;
Research Group on Continental Integration, Université du Québec À
Montréal, Montreal, QC, Canada
David A. Gantz Center for the United States and Mexico, Baker Insti-
tute for Public Policy, Rice University, Houston, TX, USA;
James E. Rogers College of Law, University of Arizona, Tucson, AZ, USA
Michelle Hurdle Faculty of Law, Université de Sherbrooke, Sherbrooke,
Canada
Sikina Jinnah Environmental Studies Department, University of Cali-
fornia, Santa Cruz, CA, USA
Noémie Laurens Department of Political Science, Université Laval,
Quebec City, QC, Canada
Nathaniel Lipkus Osler, Hoskin & Harcourt LLP, Toronto, ON,
Canada
Laurence Marquis Université Laval, Quebec, QC, Canada
Jean-Frédéric Morin Department of Political Science, Université Laval,
Quebec City, QC, Canada
Kimberly A. Nolan García Facultad Latinoamericana de Ciencias
Sociales (FLACSO), Mexico City, Mexico
Richard Ouellet Faculty of Law, Centre for Interdisciplinary Studies in
International Trade and Investment, Université Laval, Quebec City, QC,
Canada
Stéphane Paquin École Nationale d’Administration Publique,
Montreal, QC, Canada
David Pavot Department of Marketing, Business School on Antidoping
in Sports, Université de Sherbrooke, Sherbrooke, QC, Canada
Sandra Polaski Global Economic Governance Initiative, Boston Univer-
sity, Boston, MA, USA;
Independent Mexico Labor Expert Board, Washington, DC, USA
 LIST OF CONTRIBUTORS xv

Michèle Rioux Department of Political Science, Centre for the Study

of Integration and Globalization, Université du Québec À Montréal,
Montreal, QC, Canada
Micheline B. Somda Faculty of Law, Université de Sherbrooke, Sher-
brooke, QC, Canada
 Abbreviations

ACEUM Accord Canada-États-Unis-Mexique

ACTA Anti-Counterfeiting Trade Agreement
AD Anti-Dumping
AFL-CIO American Federation of Labor and Congress of Industrial Orga-
nizations
ASEAN Association of Southeast Asian Nations
BIT Bilateral Investment Treaty
BRICs Brazil, Russia, India, China
CBO Congressional Budget Office
CBSA Canada Border Services Agency
CEC Commission for Environmental Cooperation
CETA Comprehensive Economic and Trade Agreement
CFIA Canadian Food Inspection Agency
CFTA Canadian Free Trade Agreement
CPTPP Comprehensive and Progressive Agreement for Trans-Pacific
Partnership
CRS Congressional Research Service
CUSMA Canada–United States–Mexico Agreement
CVD (Subsidy)/Countervailing Duty
DBS Direct Broadcasting Satellite
DSM Dispute Settlement Mechanism
DTH Direct-to-Home
EC Extraordinary Challenge (Procedure)
ECA Environmental Cooperation Agreement
EU European Union
FCA Fiat-Chrysler

xvii
xviii ABBREVIATIONS

FCN Friendship, Commerce and Navigation

FET Fair and Equitable Treatment
FMP Fresh Milk Protein
FTA Free Trade Agreement
G7 Group of Seven
GATS General Agreement on Trade in Services
GATT General Agreement on Tariffs and Trade
GDP Gross Domestic Product
GHG Greenhouse Gas
GI Geographical Indication
GM General Motors
GPA Government Procurement Agreement
GRP Good Regulatory Practice
ICSID International Centre for Settlement of Investment Disputes
ILO International Labor Organization
IMF International Monetary Fund
IP Intellectual Property
IPRs Intellectual Property Rights
IRC International Regulatory Cooperation
ISDS Investor-State Dispute Settlement
ISP Internet Service Provider
ITC (United States) International Trade Commission
LVC Labor Value Content
MEA Multilateral Environmental Agreement
MFN Most-Favored-Nation
MOU Memorandum of Understanding
MPC Milk Protein Concentrate
NAAEC North American Agreement on Environmental Cooperation
NAALC North American Agreement on Labor Cooperation
NAFTA North American Free Trade Agreement
NAO National Administrative Office
NFS Non-Fat Solid(s)
NGO Non-Governmental Organization
NME Non-Market Economy
NT National Treatment
OECD Organization for Economic Cooperation and Development
PRI Partido Revolucionario Institucional
PTA Preferential Trade Agreement
RC Regulatory Cooperation
RCC Regulatory Cooperation Council
RCEP Regional Comprehensive Economic Partnership
RCF Regulatory Cooperation Forum
RTA Regional Trade Agreement
 ABBREVIATIONS xix

RVC Regional Value Chain

SMP Skim Milk Powder
SOE State-Owned Enterprise
SPS Sanitary and Phytosanitary
TAA (United States) Trade Adjustment Assistance (program)
TBT Technical Barrier(s) to Trade
T-MEC Tratado entre México, Estados Unidos y Canadá
TPA Trade Promotion Authority
TPP Trans-Pacific Partnership
TRIMs (Agreement on) Trade-Related Investment Measures
TRIPS (Agreement on) Trade-Related Aspects of Intellectual Property
Rights
TRQ Tariff-Rate Quota
UNCITRAL United Nations Commission on International Trade Law
UNCTAD United Nations Conference on Trade and Development
USCFTA United States–Canada Free Trade Agreement
USMCA United States–Mexico–Canada Agreement
USSR Union of Soviet Socialist Republics
USTR (Office of the) United States Trade Representative
WIPO World Intellectual Property Organization
WTO World Trade Organization
 List of Figures

Fig. 11.1 Percentage of USMCA parties’ PTAs that include specific

environmental provisions 160
Fig. 11.2 Number of environmental provisions in NAFTA
and the USMCA 170

xxi
 List of Tables

Table 5.1 US automobile trade (billion US$) (2019) 68

Table 5.2 North American car and commercial vehicle production
(selected years 1990–2019) (in millions of units
and North America as a percentage of world total) 69
Table 5.3 US initial requests and Appendix 4-B provisions 73
Table 10.1 Generations of PTAs addressing labor issues 150
Table 11.1 List of NAFTA’s environmental provisions 162

xxiii
 CHAPTER 1

Introduction

Gilbert Gagné and Michèle Rioux

After US President Trump announced the intention of his administration

to either renegotiate or break the North American Free Trade Agreement
(NAFTA), the renegotiation officially began on August 16, 2017, and
concluded on September 30, 2018. NAFTA 2.0, henceforth known as
the United States–Mexico–Canada Agreement (USMCA) in the United
States, the Tratado entre México, Estados Unidos y Canadá (T-MEC) in
Mexico, and, in Canada, the Canada–United States–Mexico Agreement
(CUSMA) and the Accord Canada–États-Unis–Mexique (ACEUM), was
signed on November 30, 2018. In the United States, further negotia-
tions were required, first between the executive and Congress, and later
with the other two parties to the USMCA, leading to a Protocol of

G. Gagné (B)
Department of Politics & International Studies, Bishop’s University,
Sherbrooke, QC, Canada
e-mail: ggagne@ubishops.ca
M. Rioux
Department of Political Science, Centre for the Study of Integration
and Globalization, Université du Québec À Montréal, Montréal, QC, Canada
e-mail: rioux.michele@uqam.ca

© The Author(s), under exclusive license to Springer Nature 1

Switzerland AG 2022
G. Gagné and M. Rioux (eds.), NAFTA 2.0,
Canada and International Affairs,
https://doi.org/10.1007/978-3-030-81694-0_1
Another random document with
no related content on Scribd:
motorboat had been towed behind the ship and they resumed their
places in the Sleuth and cast away.
Tony Prito and the others took their places in the Napoli while Chet
and Biff returned to the Envoy. One of the captured boats turned out
to be none other than Biff's own craft, which the gangsters had been
using while they were prisoners in the cave. Thus the journey home
began.
Although there was rejoicing in the other boats and much good-
natured badinage was passed about, the Hardy boys found it difficult
to be cheerful. Red's words had brought back to them their fears
concerning the safety of their father and they dreaded the news that
might await them when they returned to Bayport.
"If there is no news from him, I think we should go to Chicago and
search for him," said Frank gravely.
"I'm with you in that. But perhaps it won't be so bad. Red may have
been only trying to frighten us."
"I hope so. If that was his object he sure succeeded."
"At any rate, we found the missing chums."
"Another feather in our cap, eh?" grinned Frank. "If dad does come
back safely he won't have any reason to be ashamed of his sons."
"The Mortons and the Hoopers will be glad. The whole city will be in
a fuss over what happened to Chet and Biff."
This proved to be the case. When the three motorboats returned to
Barmet Bay and finally docked at Bayport they found a cheering
throng awaiting them, for the news had been sent to the city by the
revenue men from Rock Harbor, and the anxieties of the boys'
families were set at rest. The Hoopers and Mortons, in particular,
had been almost frantic with worry and Chet and Biff were given a
welcome befitting heroes of an expedition given up for lost for many
years.
Nor were the Hardy boys and their chums forgotten in the welcome.
Chet and Biff gave full credit to the Hardys for the part they had
played in the round-up of the gangsters. When Frank and Joe were
finally able to break away from the crowd and make their way back
home, the news of the exploit was beginning to spread rapidly
through the city.
When they came within sight of the familiar house they broke into a
run. They raced up the front steps. They flung open the front door
and burst into the hallway, almost knocking over Aunt Gertrude, who
was dusting.
"Lands sakes!" she exclaimed. "Can't you boys ever learn to come
into a house properly? I never seen the like in all my born days! Go
right back out that door and come in again like gentlemen!"
"Home again!" exclaimed Frank, with a grin. Then he turned
anxiously to his aunt. "Any word yet from dad?"
"He's in the library!" sniffed Aunt Gertrude.
"In the library!" exclaimed the boys, in astonishment.
"Yes, in the library. And what of it? Where did you expect he'd be?
Up in the attic?"
But the Hardy boys did not wait to reply. With a whoop of delight they
rushed through the living room and into the library, where they found
Fenton Hardy seated at the table. Their father got up quickly as they
rushed at him, and in a moment all three were shaking hands and
chattering in gladness and relief.
"We heard you'd been caught by the gang!" gasped Frank.
Fenton Hardy smiled. "It was the other way around," he corrected
them. "The gang was caught by me."
"And we caught the rest of them!"
"Not Red Hawkins and his crew?"
The Hardy boys nodded. Their father gazed at them in incredulous
astonishment for a moment. Then he slapped them heartily on the
back and indicated the chairs near by.
"And I thought they'd clear out when they knew Baldy and the others
were behind the bars! Why, this rounds up the entire pack! Tell me
about it. But—first of all, have Chet and Biff been found?"
The boys nodded.
"We found them on Blacksnake Island. That's how we rounded up
the gang. They captured Chet and Biff in mistake for us. They had
'em in a cave."
Then, in the seclusion of the study, the Hardy boys told of their
search for the missing chums, of their deduction that the boys might
have gone to Blacksnake Island, of their arrival on the island and the
finding of the gangsters and their cave.
Fenton Hardy listened to the recital with sparkling eyes, for he
realized that his sons had played a part that made him proud of
them, and when the tale was finished his approval was evident by
the manner in which he pounded the desk with his fist.
"Fine!" he declared. "It was real detective work in the first place and
real grit and courage from then on. I'm very proud of my boys."
"But all the time," added Frank, "we were worried about you. The
men said you had been captured in the West."
"It was a false report," said their father. "They thought they had
captured me, but it wasn't for long. I played into their hands once,
just to find out where they were all hiding. But I had another
detective to shadow me and when I found out where the gang were
gathered I gave the signal and we rounded them up."
"And now I hope the whole kit and bilin' of you will stay at home for a
while!" declared a voice from the doorway. "I declare I never did see
such a family for the men-folks to go gallivantin' around the country
and never stayin' at home. It's a wonder to me, Laura, that you put
up with it."
"Well," smilingly replied Mrs. Hardy, who had entered the room with
Aunt Gertrude, "with three first-rate detectives in the family, I'm afraid
I can't expect anything else. And they always come home again."
Aunt Gertrude sniffed.
"I'll guarantee that if I visit here much longer I'll see that those two
boys haven't much chance for more detectiving!" she announced. "I'll
cure 'em, so I will. It's no business at all for boys."
Mrs. Hardy smiled serenely.
Fenton Hardy winked gravely at his sons, so Aunt Gertrude's threat
did not greatly disturb them.
There were to be more exciting adventures in store for the Hardy
boys, and what some of these were will be related in the next volume
of this series, entitled "The Hardy Boys: Hunting for Hidden Gold," a
strenuous story of the West.
"You're welcome to try, Aunt Gertrude," said Mr. Hardy; "but I'm
afraid you'll never cure my sons of wanting to be detectives. I've set
them the example, you see."
"More's the pity," sniffed Aunt Gertrude. "Why couldn't you have
been a plumber? It's safer."
"But not as exciting," said Fenton Hardy, with a laugh.
THE END

MYSTERY STORIES FOR BOYS

By FRANKLIN W. DIXON
THE HARDY BOYS: THE TOWER TREASURE
THE HARDY BOYS: THE HOUSE ON THE CLIFF
THE HARDY BOYS: THE SECRET OF THE OLD MILL
THE HARDY BOYS: THE MISSING CHUMS
THE HARDY BOYS: HUNTING FOR HIDDEN GOLD
GROSSET & DUNLAP, PUBLISHERS, NEW YORK
 *** END OF THE PROJECT GUTENBERG EBOOK THE MISSING
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