The United States-Mexico-Canada Agreement (USMCA) is a trade agreement that came into force on July 1, 2020 between the three countries, replacing the North American Free Trade Agreement (NAFTA). It is also known as CUSMA in Canada and T-MEC in Mexico.
This is a modernized agreement with new chapters addressing Digital Trade, Good Regulatory Practices, Anticorruption as well as a specific focus on benefiting Small and Medium-Sized Enterprises, in addition to more common preferential trade provisions. Moreover, it adapts to a 21st-century economy by incorporating protections for intellectual property and expanding opportunities in services trade.
Essentially, USMCA aims for reciprocal and balanced trade, fostering economic growth and creating high-paying jobs, especially in North America. It focuses on a level playing field for labor, including enhanced rules of origin for several products and regulations against currency manipulation. It also benefits farmers, ranchers, and agribusinesses by revitalizing and strengthening food and agriculture trade.