While you were responsibly enjoying your Canada Day on Wednesday, the new trade agreement between Canada, the U.S., and Mexico went into effect.
The Canada-United-States-Mexico Agreement, or CUSMA, was the result of three-and-a-half years of intense negotiations between the three countries.
"The new NAFTA protects jobs and prosperity for workers in all three NAFTA countries," wrote Deputy Prime Minister Chrystia Freeland in a statement on Wednesday. "It is good for Canada and good for Canadian workers. It will help ensure that North America emerges stronger from the COVID-19 pandemic."
Freeland headed Canada's team of negotiators.
More than $2 billion in trade crosses the border daily, and the agreement ensures "99.9 per cent of Canada's U.S.-bound exports" remain tariff-free, continued Freeland's statement.
In southwestern Ontario, the automotive industry is just one sector that relies heavily on the smooth flow of free-trade over that border. Included in the deal are provisions ensuring a significant amount of labour is done by workers who make at least $16 per hour U.S., a concession made by Mexico during talks. A total of 70 per cent of the steel and aluminum used in vehicles must come from a CUSMA member country. There is also a 75 per cent regional content requirement protecting jobs at parts suppliers in areas where vehicles are manufactured.
Vic Fedeli, Ontario's Minister of Economic Development, Job Creation and Trade, also issued a statement on July 1, saying one in five jobs in the province depend on trade.
"Our government's top priority during the negotiations was to protect jobs for the hard-working people of Ontario," said Fedeli. "We know that ensuring strong trade ties is vital to business and the communities they support on both sides of the border."
Canada ratified the trade agreement on April 3. Canada was the last member country to ratify it after Mexico on June 19, 2019, and the U.S. on December 19, 2019.