Tradeology, the ITA Blog

The United States- Mexico- Canada Agreement and its Key Benefits

Responses provided by the International Trade Administration’s Office of North America USMCA Team

On November 30, 2018, the Trump Administration successfully negotiated an agreement with Mexico and Canada modernizing the North American Free Trade Agreement (NAFTA), now known as the United States, Mexico, Canada Agreement (USMCA)Have there been any further developments or updates since that time?

On April 18, 2019, the International Trade Commission (ITC) released its report on the USMCA’s likely impact on the U.S. economy and specific industry sectors. We welcome the ITC’s independent analysis of the USMCA.  This report is an important step forward in gaining congressional approval of the USMCA. The ITC analysis shows that USMCA will increase U.S. employment by 176,000 jobs and is projected to increase GDP by $65.2 billion (0.35 percent). The economy-wide model used by the ITC estimates the U.S. economy’s complete adjustment to the full implementation of USMCA, which is assumed to be year six after USMCA enters into force. Therefore, the estimates show the impact of the modeled provisions after the economy has responded to the changes in USMCA. We encourage you to reference page 43 of the report.  As a result of the Agreement, we will have stronger growth, more exports, more jobs, and rising higher wages – fulfilling the President’s promise to the American people. There can be no doubt that the USMCA is a big win for America’s economy.

What are some of the key provisions considered to be the most beneficial for U.S. companies?

The USMCA resulted in some significant updates to the existing NAFTA, improving market access for manufacturing and agricultural exports, as well as the inclusion of important new provisions in areas like digital trade and good regulatory practices.

In the short term, what does this mean for U.S. companies who want to do business with Canada or Mexico?

Click here for more information on the USMCA or for other U.S. commercial initiatives with Canada and Mexico.