The United States, Canada, and Mexico have recently renegotiated their trade agreement, formerly known as the North American Free Trade Agreement (NAFTA). The new agreement, known as the United States-Mexico-Canada Agreement (USMCA), was signed on November 30, 2018, and has been ratified by all three countries.

So, what is the USMCA, and how does it differ from NAFTA? The new agreement aims to modernize and update the existing trade deal, which was originally signed in 1994. Some of the key changes include new rules on digital trade, stronger protections for intellectual property rights, and increased access to Canada’s dairy market for American farmers.

One of the most significant changes in the USMCA is the modernization of rules around e-commerce and digital trade. The agreement includes provisions that prevent customs duties on digital products such as music, e-books, and software. It also provides greater protections for data privacy and intellectual property rights, which are essential for the continued growth of the digital economy.

Another area where the USMCA differs from NAFTA is in the rules around automobiles. Under the new agreement, a higher percentage of a vehicle’s parts must be made in North America in order to qualify for tariff-free trade. This is intended to encourage more manufacturing within the region and reduce the use of parts imported from outside North America.

Finally, the USMCA includes provisions designed to protect workers’ rights and the environment. For example, the agreement mandates that all three countries adopt and enforce laws that protect workers’ right to unionize and bargain collectively. It also includes provisions aimed at reducing ocean pollution and protecting marine life.

Overall, the USMCA is a significant update to the original NAFTA agreement, and it aims to improve trade relations between the three countries while also promoting modernization, digital trade, and environmental and social protections.