USMCA Agreement Versus Tech Stakeholders

Goodbye NAFTA

Cars and cattle have been the historic “hot” issues for trade agreements such as NAFTA, but that was in a time before innovative technology was in the hands of nearly every consumer. Now, technology is one of the biggest wealth-generators in our economy, and elected officials aren’t sure what to do with that.

Canada is a prominent country on the world stage when it comes to technology. We’re leaders in artificial intelligence and blockchain technology, and we have a thriving startup ecosystem. Most startups hinge on proprietary technology, and technologists worry that NAFTA negotiations fail to address the finer points of tech law.

The new agreement, titled the United-States-Mexico-Canada agreement (USMCA) gives the US greater access to the Canadian dairy market and puts mandates on auto manufacturing. Conspicuously missing from coverage, however, is how technology professionals will be affected by new trade laws.

Kundan Joshi and Jesse Hirsh, both respective technologists and industry leaders, weighed in on the CBC this past weekend.

The Main Issues

Intellectual Property is a huge consideration for Canadian startups, for most of whom see the United States as a goal market within two to three years of being founded. Entrepreneurs and developers who wish to travel to the States, as so many do, had to obtain a temporary visa for cross-border work. This is an area tech professionals want to see expanded going forward.

Joshi emphasized that IP laws must be “not only equal, but fair” for Canada-US-Mexico technology enablement. Canada is absolutely wealthy when it comes to talent and inspiration, but sometimes suffers from the short end of the stick with over-regulation. Breaking into the American market is a sign of positive progress for Canadian businesses. IP laws need to be structured to assist Canadian businesses, not hamstring them.

Also discussed was tariffs on items bought online in cross-border purchases. With the advent of e-commerce, Canadian and American retailers are able to go more head-to-head in targeting each other’s traditional customer bases. The internet allows customers to shop internationally from the comfort of their homes, which allows Canadian businesses to expand more aggressively through electronic mediums.

Summing up the discussion on NAFTA was Joshi’s advice to regulators: take data seriously. As personal tech grows, so does the collective reservoir of data. It’s essential that negotiators recognize tech as being a dominant force in the economy, and that they create policies to enhance innovation rather than stagnate it.

Technology stakeholders want fluid but secure cross-border movement when it comes to telecommunications, intellectual property and digital products. If the Canadian, US and Mexican government can uphold these desires then we’ll see an innovation landscape that produces great players, expanding on the already dominant framework of technology.

https://www.youtube.com/watch?v=LfHAvNoKaxk&feature=youtu.be