United States-Mexico-Canada Agreement (USMCA)

About

The United States-Mexico-Canada Agreement (USMCA) is a free trade agreement between the United States, Mexico, and Canada. It replaced the North American Free Trade Agreement (NAFTA) and came into effect on July 1, 2020. The USMCA aims to modernize trade arrangements by enhancing provisions related to intellectual property, labor, and environmental protections. It also includes new chapters on digital trade and anticorruption, reflecting the evolution of global trade challenges. Key provisions of the USMCA include increased rules of origin for automobiles, expanded access to the Canadian dairy market, and strengthened labor laws. The agreement promotes a more balanced trade environment, supporting high-paying jobs and economic growth in North America. It covers a significant portion of global GDP, making it a crucial component of international trade. The USMCA is set to expire in 2036 unless renewed, with a review scheduled for 2026.