The Agreement between the United States of America, the United Mexican States and Canada[1], commonly known as the United States-Mexico-Canada Agreement (USMCA), is a free trade agreement between Canada, Mexico and the United States to succeed NAFTA. [2] [3] [4] The agreement was referred to as „NAFTA 2.0″[5][6][7] or „New NAFTA“[8][9] because many nafta provisions were included and its amendments were considered largely incremented. On July 1, 2020, the USMCA came into effect in all member states. The renegotiated agreement contains a chapter on macroeconomic policies and exchange rate issues, with new political and transparency commitments in monetary matters. The chapter will address unfair monetary practices by requiring high obligations in the absence of competitive devaluations and exchange rates, while significantly enhancing transparency and putting in place accountability mechanisms. This approach is unprecedented in the context of a trade agreement and will contribute to strengthening macroeconomic and exchange rate stability. To view the full text of the agreement between the United States, Mexico and Canada, click here. According to the Office of the U.S. Trade Representative, the USMCA is a „mutually beneficial benefit to North American workers, farmers, ranchers, and businesses.“ NAFTA aimed to create a free trade area between the United States, Canada and Mexico and the USMCA uses NAFTA as the basis for a new agreement. While the USMCA has broad influence on trade of all kinds between the three named nations, one of the most important provisions of the agreement is this: during the 2016 United States During the presidential election, Donald Trump`s campaign included the promise to renegotiate or cancel NAFTA if renegotiations failed.

[21] After his election, Trump made a number of changes that affect trade relations with other countries. The withdrawal from the Paris Agreement, the cessation of participation in the Trans-Pacific Partnership negotiations and the significant increase in tariffs with China were some of the measures he implemented and reaffirmed that he was serious in seeking changes to NAFTA. [22] Much of the debate about the virtues and mistakes of the USMCA is similar to the debate about all free trade agreements (SAAs), for example the nature of free trade agreements as public goods, potential violations of national sovereignty, and the role of commercial, labor, environmental, and consumer interests in shaping the language of trade agreements. In 1994, the United States, Mexico and Canada created the world`s largest free trade region with NAFTA, generating economic growth and helping to improve the standard of living of people in all three member countries. By strengthening trade and investment rules and procedures, this agreement has proven to be a solid foundation for building Canada`s prosperity and has set a valuable example of the benefits of trade liberalization for the rest of the world. The new agreement between Canada, the United States and Mexico will serve to strengthen Canada`s strong economic ties with the United States and Mexico. On March 1, 2019, many organizations representing the agricultural sector in the United States announced their support for the USMCA and asked Congress to ratify the agreement. . . .