Trade Regulations

Trump replaces NAFTA with the USMCA trade agreement

Jan, 29, 2020 Posted by datamarnews

Week 202006

On Wednesday January 29, Donald Trump signed a law that promulgates the USMCA trade agreement between the USA, Mexico and Canada. The new agreement replaces NAFTA, the North American Free Trade Agreement.

The treaty will run for 16 years and update trade rules to encompass 21st century technology, safeguard environmental and labor standards in Mexico and reinforce requirements for trade in the automotive industry between the three countries.  In summary, the agreement has stricter rules in the labor and automotive sectors, but leaves US$1.2 trillion in US-Mexico-Canada annual trade flows largely unchanged.

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