On Wednesday, January 29, 2020, the President signed into law H.R. 5430, the “United States-Mexico-Canada Agreement Implementation Act,” which implements the United States-Mexico-Canada (USMCA) Agreement.
This agreement will replace the 25-year-old National Free Trade(NAFTA) Agreement.
According to The White House, this new agreement has a number of notable achievements, including:
- Bring new jobs and better protections for workers
- Generate up to $235 billion in economic activity.
- Include a chapter supporting small and medium sized businesses
- Improve access to Canadian and Mexican markets to export farmers’ goods
- Incentivize new investments in the American auto industry
- Create up to 76,000 new auto jobs, spur $34 billion in new investment in the auto industry, and add $23 billion in auto parts purchases annually
- Contain new protections for American intellectual property
- Include digital trade, which contains the strongest disciplines on digital trade of any international agreement, providing a firm foundation for the expansion of trade and investment in the innovative products and services where the United States has a competitive advantage, according to the Office of the United States Trade Representative
- Prohibit unfair currency practices and reinforce exchange rate stability
- National treatment, to ensure that U.S. financial service suppliers receive the same treatment as local suppliers.
- Help prevent companies from moving out of the United States
“The USMCA is the largest, most significant, modern, and balanced trade agreement in history. All of our countries will benefit greatly,” stated President Trump.
For more details on the USMCA agreement, read the fact sheet provided by the Office of the United States Trade Representative.