Understanding the US-Mexico-Canada Agreement (USMCA)
This week, the U.S., Canada and Mexico governments unveiled a new trilateral trade agreement, which if ratified, will replace NAFTA. It is called US-Mexico-Canada Agreement (USMCA) and updates all the economic sectors in the economy of the three countries.
Although it’s difficult to foresee how this agreement will change and affect each country, we already know that Mexico and Canada will most likely ratify the agreement by the end of the year and the US Congress will be voting on it on the first quarter of 2019.
According to the Office of the U.S. Trade Representative (USTR), the USMCA will feature key changes impacting the manufacturing industry: Agriculture Market Access and Dairy Outcomes, Rebalancing Trade to Support Manufacturing and Strengthening North American Trade in Agriculture.
It’s still a long way ahead to know how USMCA will differ from the NAFTA and what consequences it will have in a distant future. As of now, it faces the same problems as hundreds of agreements out there and develops to face a different fate.