United States–Mexico–Canada Agreement
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| Type | Free trade agreement |
| Drafted | September 30, 2018 |
| Signed | September 30, 2018 December 10, 2019 (revised version) |
| Location | Mexico City, Mexico |
| Effective | July 1, 2020 |
| Condition | 3 months after notification of each state that all internal procedures have been completed |
| Expiration | Upon the end of a 16-year term (renewable indefinitely) |
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The Agreement between the United States of America, the United Mexican States, and Canada (USMCA)[1][Note 1] is a free trade agreement among the United States, Mexico, and Canada, in effect from July 1, 2020. It replaced the North American Free Trade Agreement (NAFTA) implemented in 1994.[2][3][4] Further, it is sometimes characterized as "NAFTA 2.0",[5][6][7] or "New NAFTA",[8][9] since it largely maintains or updates the provisions of its predecessor.[10] The region including Canada, Mexico, and the United States is one of the world's largest free trade zones,[11] with a population of more than 510 million people and an economy of $30.997 trillion in nominal GDP – nearly 30 percent of the global economy, and the largest of any trade bloc in the world.
All sides came to a formal agreement on 1 October 2018,[12] and U.S. president Donald Trump proposed USMCA during the G20 Summit the following month, where it was signed by him, Mexican president Enrique Peña Nieto, and Canadian prime minister Justin Trudeau. A revised version reflecting additional consultations was signed on December 10, 2019. It was ratified by all three countries, with Canada being the last to ratify on March 13, 2020. Following notification by all three governments that the provisions were ready for domestic implementation, the agreement came into effect on 1 July 2020.[13][14][15][16][17]
USMCA is primarily a modernization of NAFTA, namely concerning intellectual property and digital trade,[18][19] and borrows language from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Canada and Mexico are signatories. Key changes from its predecessor include increased environmental and working regulations; greater incentives for automobile production in the U.S. (with quotas for Canadian and Mexican automotive production); more access to Canada's dairy market; and an increased duty-free limit for Canadians who buy U.S. goods online.[19][20][Note 2] The USMCA contains a provision for review and adjustment in 2026.[21]
The 2025 United States trade war with Canada and Mexico began on February 1, 2025, when at the beginning of his second non-consecutive term, President Trump cited an "extraordinary threat posed by illegal aliens and drugs" and imposed an additional 25% tariff on imports from Canada and Mexico.[22] One day before they were set to take effect, the tariffs were paused for 30 days (from February 4 to March 4), after Canada and Mexico agreed to increase national security measures at their respective borders with the US, and to allow for negotiations on economic agreements.[23] Canada and Mexico accused the United States of violating the USMCA when 25% tariffs went into effect on March 4, 2025.[24][25] On March 6, 2025, two days after the tariffs took effect, Trump announced that all USMCA compliant products would be exempt from the tariffs until April 2, 2025.[26]
- ^ "Agreement between the United States of America, the United Mexican States, and Canada 12/13/19 Text". ustr.gov. Office of the United States Trade Representative. December 13, 2019. Archived from the original on June 8, 2020. Retrieved June 15, 2020.
- ^ "Mexico first to ratify USMCA trade deal, Trump presses U.S. Congress to do same". Reuters. June 19, 2019. Archived from the original on November 26, 2020. Retrieved January 29, 2020.
- ^ "Trump Signs Trade Deal With Canada and Mexico". The New York Times. January 29, 2020. Archived from the original on June 29, 2020. Retrieved January 29, 2020.
- ^ "Canadian Parliament rushes through ratification of USMCA trade pact". Reuters. March 13, 2020. Archived from the original on November 26, 2020. Retrieved March 14, 2020.
- ^ Long, Heather. "The USMCA is finally done. Here's what is in it". The Washington Post. Archived from the original on November 26, 2020. Retrieved February 18, 2020.
- ^ Lea, Brittany De (November 30, 2018). "NAFTA 2.0: What to know". FOXBusiness. Archived from the original on November 26, 2020. Retrieved February 18, 2020.
- ^ Montes, Juan (February 13, 2019). "Strikes at Low-Wage Plants Signal Revival of Labor Demands in Mexico". The Wall Street Journal. Archived from the original on November 26, 2020. Retrieved February 18, 2020.
- ^ Swanson, Ana; Tankersley, Jim (January 29, 2020). "Trump Just Signed the U.S.M.C.A. Here's What's in the New NAFTA". The New York Times. ISSN 0362-4331. Archived from the original on November 26, 2020. Retrieved July 2, 2020.
- ^ "Under USMCA, Canada rolls with 'new NAFTA'". FreightWaves. July 1, 2020. Archived from the original on November 26, 2020. Retrieved July 2, 2020.
- ^ Swanson, Ana; Tankersley, Jim (January 29, 2020). "Trump Just Signed the U.S.M.C.A. Here's What's in the New NAFTA. (Published 2020)". The New York Times. ISSN 0362-4331. Retrieved March 12, 2021.
- ^ Canada, Global Affairs (April 21, 2022). "The Canada-United States-Mexico Agreement". GAC. Retrieved October 13, 2022.
- ^ Dangerfield, Katie (August 30, 2018). "NAFTA deal reached: Canada, U.S., Mexico reach trade agreement under new name". Global News. Archived from the original on November 26, 2020. Retrieved October 1, 2018.
- ^ "New North American trade pact to take effect July 1: USTR". Reuters. April 24, 2020. Archived from the original on November 26, 2020. Retrieved April 26, 2020.
- ^ Rodriguez, Sabrina (April 24, 2020). "North American trade deal to take effect on July 1". Politico. Archived from the original on November 26, 2020. Retrieved April 26, 2020.
- ^ "U.S. seals the deal on USMCA, says trade agreement can now take effect July 1". Canadian Broadcasting Corporation. April 24, 2020. Archived from the original on November 26, 2020. Retrieved April 26, 2020.
- ^ "New North American trade deal to come into effect in July". Deutsche Welle. April 25, 2020. Archived from the original on November 26, 2020. Retrieved April 26, 2020.
- ^ CBC News, "Mexico joins Canada, notifies U.S. it's ready to implement new NAFTA" 2020/04/04 Archived November 26, 2020, at the Wayback Machine accessed 6 April 2020
- ^ "Are You Afraid of Google? BlackBerry Cofounder Jim Balsillie Says You Should Be". The Walrus. April 10, 2019. Archived from the original on November 26, 2020. Retrieved September 21, 2019.
- ^ a b "USMCA v NAFTA: What's changed and what it means for IP in Canada | Smart & Biggar/Fetherstonhaugh". www.smart-biggar.ca. October 2, 2018. Archived from the original on July 25, 2019. Retrieved January 27, 2019.
- ^ "Labour, environment standards key to getting USMCA through: Canadian ambassador". National Post. The Canadian Press. December 3, 2018. Retrieved May 18, 2019. |url=
- ^ Zhang (PIIE), Julieta Contreras (PIIE), Gary Clyde Hufbauer (PIIE), Jeffrey Schott (PIIE), Ye (January 30, 2025). "The future of the USMCA". piie.com. Retrieved February 3, 2025.
{{cite web}}: CS1 maint: multiple names: authors list (link) - ^ "Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China". The White House. February 2, 2025. Retrieved February 3, 2025.
- ^ Garcia, David Alire; Hunnicutt, Trevor; Ljunggren, David (February 3, 2025). "Trump pauses tariffs on Mexico and Canada, but not China". Reuters. Retrieved February 4, 2025.
- ^ "Trudeau slams Trump for starting 'very dumb' trade war with Canada while appeasing Russia's Putin". PBS News. March 4, 2025. Retrieved March 6, 2025.
- ^ "Mexico says it will impose retaliatory tariffs on US with details coming Sunday". AP News. March 4, 2025. Retrieved March 6, 2025.
- ^ "Trump walks back tariffs on a range of goods from Mexico and Canada for one month". NBC News. March 6, 2025. Retrieved March 7, 2025.
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