The USMCA: A New Trade Deal for North America
The United States-Mexico-Canada Agreement (USMCA) is a new trade deal between the United States, Mexico, and Canada that entered into force on July 1, 2020. The USMCA replaces the previous trade agreement between the three nations, the North American Free Trade Agreement (NAFTA), which had been in effect since January 1994. The USMCA is a mutually beneficial agreement that supports high-paying jobs, economic growth, and a more balanced, reciprocal trade for North American workers, farmers, ranchers, and businesses.
Level Playing Field for Workers
- One of the main highlights of the USMCA is the creation of a more level playing field for American workers. The agreement includes improved rules of origin for automobiles, trucks, and other products, as well as disciplines on currency manipulation. These provisions aim to ensure that North American goods are not at a disadvantage compared to goods from other countries.
Benefits for Farmers, Ranchers and Agribusinesses
- Another key aspect of the USMCA is the benefits it provides for American farmers, ranchers, and agribusinesses. The agreement modernizes and strengthens food and agriculture trade in North America, providing new opportunities for American farmers and ranchers to sell their products in the Mexican and Canadian markets.
Supporting a 21st Century Economy
- The USMCA also supports a 21st century economy by providing new protections for U.S. intellectual property. Additionally, the agreement includes chapters on digital trade, anticorruption, and good regulatory practices, as well as a chapter devoted to ensuring that small and medium-sized enterprises benefit from the agreement.
Benefits for Small and Medium-Sized Enterprises
- The USMCA's provisions for small and medium-sized enterprises (SMEs) are designed to help these businesses take full advantage of the opportunities created by the agreement.
The agreement provides for the reduction of barriers to trade for SMEs, as well as the establishment of a new SME Committee to help SMEs navigate the agreement's provisions.
Written by IAS POINT