Trade Agreement Contains Improvements and Modernized Approaches

Pete CodellaArticles

On July 1, 2020, the United States-Mexico-Canada Trade Agreement (USMCA) is effective, providing relief to American manufacturers, workers and farmers.

The agreement supports a more balanced, reciprocal trade that will lead to freer markets, fairer trade and robust economic growth in North America. It contains significant improvements and modernized approaches to rules of origin, agricultural market access, intellectual property, digital trade, financial services, labor and numerous other sectors. 

“The crisis and recovery from the COVID-19 pandemic demonstrate that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America,” said Ambassador Robert Lighthizer. “The USMCA’s entry into force is a landmark achievement in that effort.”

Agreement highlights include:

  • Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products and disciplines on currency manipulation.
  • Benefiting American farmers, ranchers and agribusinesses by modernizing and strengthening food and agriculture trade in North America.
  • Supporting a 21st Century economy through new protections for U.S. intellectual property, and ensuring opportunities for trade in U.S. services.
  • New chapters covering digital trade, anti-corruption and good regulatory practices, as well as a chapter devoted to ensuring that small and medium-sized enterprises benefit from the agreement.

The agreement between the United States, Mexico and Canada signed on November 30, 2018, can be viewed here.