The USMCA trade deal replaces 26-year-old NAFTA
US-Mexico-Canada (USMCA) trade deal which is replacing the North American Free Trade Agreement (NAFTA) is to be effective from July 1.
The US trade office in a statement said, “The USMCA’s entry into force marks the beginning of a historic new chapter for North American trade by supporting more balanced, reciprocal trade, leading to freer markets, fairer trade, and robust economic growth in North America.”
The US President Donald Trump had criticised the 26-year-old NAFTA for being unfair. The USMCA was signed in 2018 after the possibility of the US pulling out from NAFTA without a trade deal.
The white house proclamation released on April 24 stated, “ In the United States, intellectual property-intensive industries account for nearly one-third of all employment and approximately 40 percent of our country’s gross domestic product, an estimated $6.6 trillion.”
The new USMCA trade deal has revised provisions for labour and environmental standards, intellectual property protections, and country of origin rules. According to the US, the deal will shift jobs from Mexico and Canada to the US and provide more opportunities for ‘for American workers, farmers and ranchers.’
