Mexico June 16 2020 (appro).- The entry of the Free Trade Agreement called USMCA or TMEC between the countries of the USA, Canada and Mexico will take place from july 1, 2020.
The entry of the agreement between the three countries of the Americas will take place amid the Resumption of activities after having suffered the COVID-19 pandemic in countries on all continents, which many authors describe such as "The Worst Health Crisis" of the last century and its consequent social, political and economic effects worldwide.
The Independent Commission for the Reform of International Corporate Taxation (ICRIT) proposed five measures based on a better collection of wealth taxes "That should not let the economic burden fall on those who have the least" and they are urgent measures as described by the Nobel Prize in economics Joseph Stiglitz for the high global tax evasion of wealthy people and corporations who have unique tools such as profits in tax havens and unique ways to hide their profits on businesses and intangible assets sometimes internationally according to the latest reports from diverse economic organizations:
Specifically on the status of the implementation process of the Mexico-United States-Canada Treaty (T-MEC or USMCA) signed by the three countries on November 30, 2018, their subsequent Signature and ratification of the Modifying Protocol in December 2019 and February 2020 will happen with the entry into force on July 01 2020. The agreement between the three countries will have as main objectives: The facilitation of trade between the three countries, the simplification of Import-Export processes, certification of origin, and various topics such as labor reform, anti-corruption agreements, digital commerce, antitrust policies, competition, SMEs, recognition of property and intellectual property, as well as the environment, among other important issues listed in their original text in the league of this bulletin, valid for 16 years with the possibility of being extended at the will of the parties.
It was agreed, among other important things, that vehicle producers must certify that for the production of 40% of the value of each vehicle, workers directly related to the assembly production lines of said vehicles were paid a salary of at least USD $ 16 an hour.
Throughout 34 Chapters besides their annexes, the content of the USMCA or TMEC addresses various important topics. Mexico has great challenges and the great responsibility of proposing modernization and economic development policies may or not be through the recommendations of specialized economic organizations such as those listed in the latest report of the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Chamber of Commerce (ICC) appropriate to the entry of this international agreement because the USA and Canada financial systems are very robust and this allows them to have accessible and sufficient resources, technology and subsidies to "ALL" their exporting companies but in general is not the same reality in Mexico.
In the Mexican case, the Austerity Policy of the Government of President Andres Manuel López Obrador works well, but there is a need to collect taxes quickly and in a better way, as described in the economic study called "Welfare with Equity towards a new Social Pact" carried out together by the Espinosa Yglesias Private Economic Studies Center (CEEY), the College of Mexico (CM) and the French Development Agency (FDA), which showed that in the country people have the perception that at least the 40% of income to pay taxes when in reality hardly an effective rate of 18% is collected on total income for the year, which translates into a collection of just 16% of GDP. That if it could improve in the following months as planned, it will give a good balance between the government's income to maintain the support programs during the next period of economic recovery after the pandemic and will be able to cope with the conditions of the agreement between the three countries subject to the new rules of this TMEC-USMCA 2020-2036.
