Global and Regional Trade: What replaced NAFTA?

In 2018, the United States, Mexico, and Canada signed a new trade agreement to replace the North American Free Trade Agreement (NAFTA). The new agreement is called the United States-Mexico-Canada Agreement (USMCA) and it went into effect in 2020.

The USMCA is similar to NAFTA in many ways, but it includes updated provisions on digital trade, intellectual property, and labor and environmental standards.

The agreement also includes new provisions on rules of origin for automobiles, which require that a higher percentage of a car's components be made in North America in order for it to qualify for duty-free treatment.

The USMCA aims to maintain the free flow of goods and services among the three countries and also aims to create new opportunities for economic growth and development. It also includes new provisions on trade in goods and services, labour and environment, and intellectual property rights.

The USMCA is considered to be a modernized version of NAFTA, and it is considered to be an important step in maintaining and expanding trade ties among the three countries.