Now that the USMCA has come into force, we are unpacking some of the new features of the agreement below and explaining why they are important. A recent decision by the Federal Court of Justice of Canada should mean the end of NAFTA investment renegotiations and launch a renegotiation of the investment chapters of other trade agreements. ISDS is the mechanism that allows foreign investors to submit arbitration to a three-person tribunal against host countries, i.e. the countries in which they have made these investments. This mechanism has been integrated into many international investment agreements as well as trade agreements with investment chapters. However, ISDS has been the subject of a thorough review in recent years, which has led to a strong advance in favour of reforming the mechanism or abandoning it al entirely. Under the leadership of President Donald J. Trump, the United States renegotiated the North American Free Trade Agreement and replaced it with an updated and balanced agreement that works much better for North America, the U.S.-Mexico-Canada Agreement (USMCA), which came into effect on July 1, 2020. The USMCA is a mutually beneficial benefit to workers, farmers, farmers and businesses in North America. The agreement creates more balanced and reciprocal trade that supports high-paying jobs for Americans and cultivates the North American economy. The new North American Free Trade Agreement will enter into force on July 1, 2020. The new agreement is referred to as “USMCA” in the United States (i.e.

an agreement between the United States and Canada-Mexico), “CUSMA” in Canada (i.e. Canada, the United States and Mexico) and “T-MEC” in Mexico (i.e. tratado between Mexico, Estados Unidos y Canadé). On April 24, 2020, the U.S. Trade Representative issued a press release confirming that the three NAFTA member states had written to the other parties notifying them that they had completed the internal procedures necessary for the USMCA to enter into force. In accordance with paragraph 2 of the protocol, which replaces the nafta protocol with the USMCA, the USMCA came into force on the first day of the third month following the last notification, namely July 1, 2020. Under the Sunset clause, nafta remains in effect for three years for legacy investments and pending claims. More recently, uniform rules for trade in goods have been adopted under the new agreement. The provisions of the Single Regulation specify the rights and obligations set out in chapters four to seven of the trade agreement and specify the requirements and conditions that must be met in order for cross-border shipments to enjoy preferential market access.