United States-Mexico-Canada Agreement (USMCA)
Trade agreementAbout
The United States-Mexico-Canada Agreement (USMCA) is a free trade agreement that replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020. It aims to modernize trade relations among the three countries, enhancing economic integration and cooperation. Key provisions include strengthened rules of origin for automobiles, increased access to Canada's dairy market for U.S. farmers, and updated intellectual property protections. The agreement also addresses biotechnology, geographical indications, and sanitary/phytosanitary measures to ensure fair and science-based trade practices. USMCA introduces new chapters on digital trade, anticorruption, and good regulatory practices, benefiting small and medium-sized enterprises. It includes robust labor and environmental provisions, making these obligations enforceable. The agreement promotes a more balanced trade environment, supporting high-paying jobs and economic growth in North America. With a combined GDP of nearly $30 trillion, the region forms one of the world's largest free trade zones, significantly impacting regional economies and global trade dynamics.
