2281_sejda-DYJ.pdf - U.S-Mexico-Canada Trade Agreement well...

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U.S.-Mexico-Canada Trade Agreement 368 | well as market access commitments in Canada’s commercial banking and insurance (also mode 1). 885 Market access changes made by the United States that were incorporated in the analyses include measures affecting parts of cargo handling and of storage and warehousing (modes 1 and 3) and courier services (modes 1 and 3), as well as commercial banking and insurance (mode 1). A large portion of Mexico’s effective changes affect sectors for which Mexico has undertaken new commitments in USMCA. However, foreign equity restrictions are not covered by USMCA’s market access provisions; instead, they are captured under the agreement’s national treatment obligations. As a result, the absence of equity restrictions in a sector-mode within USMCA’s market access commitments is not interpreted as an effective change. For example, a foreign equity restriction present in Mexico’s mode 3 market access commitments under GATS—but absent from its USMCA mode 3 market access commitments as in the case of accounting, auditing, and bookkeeping services—is excluded from the quantitative analysis. NCM Commitments The quantitative analyses also include effective changes to the parties’ services obligations stemming from differences between NCMs listed in NAFTA and those listed in USMCA. These typically involve the movement of NCMs from Annex II in NAFTA to Annex I in USMCA. 886 NAFTA Annex I NCMs that do not appear in USMCA or that are modified by USMCA to reflect autonomous regulatory changes that occurred since NAFTA first went into effect are considered to have been captured by NAFTA’s ratchet mechanism; as such, they are not considered to represent an effective change and are not included in the quantitative analyses. For more details on each country’s NCMs, see chapter 6. OECD STRI Rescoring and Weighting To express effective changes quantitatively, scores were assigned to these changes based on the value of relevant measures from the OECD’s STRI category “restrictions on foreign entry.” Specifically, x Market access and NCM-based changes affecting mode 1 were scored based on the contribution to the STRI of a corresponding market entry measure that affects all modes of trade. x Changes impacting market access through mode 3 are scored using the average OECD STRI scores for two subcategories of “restrictions on foreign entry”: “legal form: only joint ventures are allowed” and “screening explicitly considers economic interests.” 887 x Mode 3 NCM-based changes were scored by recalculating the portion of the STRI representing foreign equity restrictions. 885 Cabotage is the right to operate transportation services within a country. 886 In both NAFTA and USMCA, Annex I lists existing measures that do not conform to the agreement’s obligations, while Annex II lists areas in which the parties reserve the right to maintain current barriers or impose more restrictive or new barriers. Annex I items are subject to a ratchet mechanism, under which any autonomous
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  • Fall '19
  • International Trade, Ute tribe, stri, Uintah and Ouray Indian Reservation, Ute Mountain Ute Tribe, Bethel Census Area, Alaska

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