USMCA After One Year

Finance: Implementation and Enforcement of the United States – Mexico – Canada Agreement: One Year After Entry into Force, July 27, 2021

Just a quick note to remind you that Mexico and Canada have consumption taxes and the United States does not. This complicates our trade policy and makes such agreements a complicated mess favoring some industries over others. Please see our usual analysis on consumption taxes and trade.

Regarding Mexico, if we had the same arrangements with Canada on temporary visas, agricultural workers could come in easily, send money home and eventually return (as many do). These visas should also have an overt path to residency  after three renewals.

Attachment: Trade Policy and Value Added Taxes