14. Macroeconomic Policies and Exchange Rate Matters

In the United States–Mexico–Canada Agreement (USMCA), Chapter 33 on Macroeconomic Policies and Exchange Rate Matters constitutes a new addition to the realm of preferential trade agreements and therefore had no equivalent chapter in the North American Free Trade Agreement. The new provisions seem to have been included in the renegotiation agenda at the request of the United States following the multiple currency manipulations done in the 2003–2013 decade and the inability of the International Monetary Fund (IMF) to effectively regulate competitive devaluations. Yet, the majority of the substantive articles resemble non-binding provisions found in the IMF Articles of Agreement. However, the parties agreed to subject the transparency requirements to the dispute settlement mechanism of the entire agreement, adding a layer of enforcement not found previously in other forums. While this chapter does not respond to an issue between the three USMCA parties, it demonstrates the will of some states to include more and more non-trade issues in trade agreements in order to benefit from the strong dispute settlement mechanisms they generally contain. It remains to be seen if Chapter 33 will be reproduced in future trade agreements.