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Free Trade Agreement between the Us Mexico and Canada

In: Uncategorized

The free trade agreement between the United States, Mexico, and Canada, commonly referred to as the USMCA, has been a hot topic in recent years. After much debate and negotiation, the agreement was finally signed in November 2018, replacing the outdated North American Free Trade Agreement (NAFTA). In this article, we’ll explore what the USMCA is, what changes it brings and its significance for the three countries involved.

What Is the USMCA?

The USMCA is a trade agreement between the United States, Mexico, and Canada, aimed at modernizing and updating NAFTA, which was signed in 1994. The agreement outlines new rules for trade between the three countries to facilitate cross-border commerce. One of the primary goals of the agreement is to promote the growth of North American businesses and workers by making trade easier and more efficient.

What Changes Does the USMCA Bring?

The USMCA brings a number of changes to the previous NAFTA agreement. Here are some of the key differences:

1. Auto Manufacturing: To encourage auto production in North America, the USMCA requires that at least 75% of a vehicle`s components be manufactured in the United States, Mexico, or Canada to be eligible for duty-free treatment.

2. Labor Laws: The USMCA requires Mexico to pass new labor laws to protect workers` rights and improve wages, which is expected to level the playing field for workers across North America.

3. Intellectual Property: The USMCA contains new provisions to protect intellectual property rights, including stronger enforcement against counterfeit goods.

4. Dairy: The USMCA expands access for US dairy farmers to sell their products in Canada, creating new opportunities for American agriculture.

What Is the Significance of the USMCA?

The USMCA is significant for many reasons. First and foremost, it provides stability and certainty for North American businesses that rely on cross-border commerce. Second, it modernizes the framework for trade in the region, bringing it in line with the current economic landscape. Finally, it sets a new standard for trade agreements, incorporating provisions for digital trade and e-commerce that were not included in previous trade deals.


The free trade agreement between the United States, Mexico, and Canada, or the USMCA, is a significant milestone in the history of North American commerce. It brings new rules for trade that will benefit businesses and workers across the three countries. With the ratification of the agreement, North America is well-positioned to continue its growth and economic success for years to come.

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