NAFTA was supplemented by two other regulations: the North American Environmental Cooperation Agreement (NAAEC) and the North American Agreement on Labour Cooperation (NAALC). These tangential agreements should prevent companies from moving to other countries in order to use lower wages, more moderate health and safety rules and more flexible environmental rules. The eu-Canada Sustainability Impact Assessment (EID), a three-part study commissioned by the European Commission to independent experts and completed in September 2011, provided an overall forecast of the impact of CETA.  It foresees a number of macroeconomic and sectoral impacts, indicating that in the long run the EU could see real GDP growth of 0.02 to 0.03% as a result of CETA, while it could increase from 0.18 to 0.36% in Canada; The “Investments” section of the report suggests that these figures could be higher when investment increases are taken into account. At the sectoral level, the study predicts that the strongest growth in production and trade will be driven by the liberalization of services and the removal of tariffs on sensitive agricultural products; it also proposes that CETA could have a positive social impact if it contains provisions on the ILO`s core labour standards and the Decent Work Agenda. The study describes a large number of effects in various “cross-cutting” components of CETA: it opposes the controversial NAFTA-style provisions of ISDS; provides for potentially unbalanced benefits of a chapter on public procurement (GP); assuming that CETA will lead to upward harmonization of intellectual property rules, including changes to Canada`s intellectual property laws; and foresees effects on competition policy and several other areas.  To see the full text of the agreement between the United States, Mexico and Canada, click here. The North American Free Trade Agreement (NAFTA) was implemented to promote trade between the United States, Canada and Mexico. The agreement, which removed most tariffs on trade between the three countries, came into force on 1 January 1994. Between 1 January 1994 and 1 January 2008, many tariffs – notably for agriculture, textiles and automobiles – were phased out. The second parallel agreement is the North American Environmental Cooperation Agreement (NAAEC), which established the Commission for Environmental Cooperation (CEC) in 1994.
The CEC is responsible for strengthening regional cooperation in the environmental field, reducing potential trade and environmental conflicts and promoting effective enforcement of environmental legislation. It also facilitates public cooperation and participation in efforts to promote conservation, protection and improvement of the North American environment. It consists of three main components: the Council (Minister of the Environment), the Joint Advisory Committee of Governments (JPAC) and the Secretariat, which is headquartered in Montreal. It has an annual budget of $9 million, with Canada, Mexico and the United States contributing $3 million per year and settled by consensus (non-majority). An agreement on the promotion and protection of foreign investment (FIPA) is an agreement to encourage foreign investment. At first, it was not known whether or not EU Member States should ratify the agreement, given that the European Commission placed the treaty solely under the EU`s responsibility.  However, in July 2016, it was decided to characterize CETA as a “mixed agreement” and therefore ratify it through national procedures.  Signed on the sidelines of the G20 Heads of State and Government Summit in Buenos Aires in November 2018, the CUSMA results preserve key elements of long-term trade relations and contain new and updated provisions to address 21st century trade issues and foster opportunities for nearly half a billion people who call North America at home.