Usmca Trade Agreement Wiki

The United States-Mexico-Canada Agreement (USMCA) is a trade agreement that was signed on November 30, 2018, in Buenos Aires, Argentina. It replaces the North American Free Trade Agreement (NAFTA), which was in effect from 1994 to 2018. The USMCA is an updated version of NAFTA, with a few changes to modernize the agreement and improve trade relations between the three countries.

One of the significant changes in the USMCA is the revision of the rules of origin for auto manufacturing. The new agreement requires that 75% of a car`s components be made in the USMCA region to qualify for tariff-free treatment, up from 62.5% under NAFTA. Additionally, it requires more of the car`s content to be produced by workers earning at least $16 per hour, which is meant to discourage the outsourcing of auto jobs to Mexico.

Another notable change is the inclusion of new provisions regarding digital trade. This includes measures to protect intellectual property rights, prohibit data localization requirements, and prohibit customs duties on electronic transmissions. It also includes a new chapter on small and medium-sized enterprises (SMEs), which aims to make it easier for these businesses to trade across borders.

The USMCA also includes labor and environmental provisions that were not included in NAFTA. It requires Mexico to pass labor reform measures that protect workers` rights to unionize and collectively bargain, and it establishes a dispute settlement mechanism to address allegations of labor violations. The USMCA also includes environmental commitments, such as a ban on shark finning and new regulations on air pollution.

Overall, the USMCA is a significant trade agreement that modernizes the rules of trade between the United States, Mexico, and Canada. It includes changes to rules of origin for auto manufacturing, new provisions regarding digital trade and SMEs, and labor and environmental provisions that were not included in NAFTA. For more information on the USMCA, visit its wiki page.