United States–Mexico–Canada Agreement
The Agreement between the United States of America, Mexico, and Canada (USMCA)[1][Note 1] is a free trade agreement between the United States, Mexico, and Canada. It replaced the North American Free Trade Agreement (NAFTA) implemented in 1994,[2][3][4] and is sometimes characterized as "NAFTA 2.0",[5][6][7] or "New NAFTA",[8][9] since it largely maintains or updates the provisions of its predecessor.[10] USMCA is one of the world's largest free trade zones,[11] with a population of more than 510 million people and an economy of $30.997 trillion in nominal GDP — nearly 30 percent of the global economy.
"USMCA" redirects here. For the geographic code, see UN/LOCODE:USMCA. For the air branch of the United States Marine Corps, see United States Marine Corps Aviation.
- United States–Mexico–Canada Agreement (USMCA) (American English)
- Canada–United States–Mexico Agreement (CUSMA) (Canadian English)
- Tratado entre México, Estados Unidos y Canadá (T-MEC) (Spanish)
- Accord Canada–États-Unis–Mexique (ACEUM) (French)
- United States–Mexico–Canada Agreement (USMCA) (American English)
- Canada–United States–Mexico Agreement (CUSMA) (Canadian English)
- Tratado entre México, Estados Unidos y Canadá (T-MEC) (Spanish)
- Accord Canada–États-Unis–Mexique (ACEUM) (French)
30 September 2018
30 November 2018
10 December 2019
(revised version)
1 July 2020
3 months after notification of each state that all internal procedures have been completed
Upon the end of 16-year term (renewable)
All sides came to a formal agreement on October 1, 2018,[12] and U.S. president Donald Trump proposed USMCA during the G20 Summit the following month, where it was signed by himself, Mexican President Enrique Peña Nieto, and Canadian Prime Minister Justin Trudeau. A revised version reflecting additional consultations was signed on December 10, 2019, and ratified by all three countries, with Canada being the last to ratify on March 13, 2020. Following notification by all three governments that the provisions were ready for domestic implementation, the agreement came into effect on July 1, 2020.[13][14][15][16][17]
USMCA is primarily a modernization of NAFTA, namely concerning intellectual property and digital trade,[18][19] and borrows language from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Canada and Mexico are signatories. Key changes from its predecessor include increased environmental and working regulations; greater incentives for automobile production in the U.S. (with quotas for Canadian and Mexican automotive production); more access to Canada's dairy market; and an increased duty-free limit for Canadians who buy U.S. goods online.[19][20][Note 2]
Long title
To implement the Agreement between the United States of America, the United Mexican States, and Canada attached as an Annex to the Protocol Replacing the North American Free Trade Agreement.
USMCA
12 December 2019 (107-1)
Federal Executive Power
10 December 2019
13 March 2020
13 March 2020
13 March 2020