The new North American Free Trade Agreement (NAFTA) is a landmark trade agreement that was signed between Mexico, Canada and the United States in November 2018. The agreement, now known as the United States-Mexico-Canada Agreement (USMCA), is a modernization of the original NAFTA agreement that was signed in the early 1990s.
One of the major improvements of the USMCA is the inclusion of new rules on intellectual property, digital trade and labor. The agreement also includes provisions on the environment and other areas of trade, such as agriculture and energy.
One of the key changes in the USMCA is the new rules of origin for the auto industry. Under the new agreement, automakers are required to use more locally sourced parts in order to qualify for duty-free treatment. This provision aims to boost North American manufacturing and job creation.
The USMCA also includes provisions to protect the interests of North American workers. It requires Mexico to pass labor reforms that will enhance worker rights and allow unions to bargain for higher wages and better working conditions. This provision is aimed at leveling the playing field for North American workers and preventing companies from moving jobs to Mexico to take advantage of cheap labor.
In addition, the USMCA includes updated environmental provisions. The agreement requires the three countries to take measures to reduce emissions, combat marine litter, and promote the conservation of biological diversity. These provisions aim to ensure that trade supports sustainable development and does not harm the environment.
Overall, the USMCA is a significant improvement over the original NAFTA agreement. It modernizes the trade relationship between the three North American countries, while also protecting the interests of workers, the environment, and other areas of trade. The agreement is expected to boost economic growth and job creation, while also promoting sustainable development and a more level playing field for all.