No more NAFTA For The U.S., Mexico, and Canada. NAFTA comes to an end, to be replaced by a new agreement. The USMCA replaces NAFTA.
Did you know that late last month the U.S. and Canada reached a new free trade pact that includes Mexico?
The 25-year-old, badly outdated North American Free Trade Agreement (NAFTA) is going the way of the Dodo.
There is no heartbreak here, many didn’t like it, including the incumbent President. Trump had labeled it a disaster and promised to do away with it. He has now done exactly that as USMCA replaces NAFTA.
The new agreement incorporates Mexico and is known as The United States-Mexico-Canada Agreement (USMCA).
The U.S. Trade Representative Robert Lighthizer and Canada’s Foreign Affairs Minister Chrystia Freeland, stated, “The new agreement will result in a more free market, greater fairness in trade and robust economic growth in our region”.
But, the USMCA didn’t happen overnight.
Negotiations have been going on for over a year, the 6 weeks previous to it being signed saw the tensest activity. Eventually, both sides found some common ground and it is now being hailed as a success.
Both see the agreement as a good deal for their citizens in the region of 500 million residents who conducts roughly $1 trillion in trade a year.
There was considerable pressure get the deal in place. The agreement needs to be signed before Mexico’s President Enrique Pena Nieto leaves office on December 1st, so there is plenty to get done as USMCA replaces NAFTA.
U.S. law requires the White House to submit the text of the trade deal to Congress 60 days before signing. Officials scrambled to get this done in time, literally right down to the wire. Now the USMCA replaces NAFTA.
Senior U.S administration official said the final rewrite is a “Fantastic agreement and is a big win for the United States, Mexico, and Canada.
The new agreement includes Canada opening up its dairy market further to U.S. producers as USMCA replaces NAFTA.
It has stronger protection for workers, tough environmental rules, with an updated trade relationship to cover the digital economy and provides intellectual property protection.
It provides the ability to prevent manipulation of trade rules, like covering currency values with more control over outside countries to may try to take advantage of the duty-free market.
The good news is all parties have reached a new agreement, which will result in a better economy for all.
USMCA replaces NAFTA
Sonia Rina Landry is a passionate entrepreneur, speaker, author, and personal development coach. She is an outspoken advocate of the free market economy and has helped countless clients identify their core values, envision and realize goals that resonate with those values. She oversees several businesses online and offline.