President Trump has finally signed the new trade agreement between the United State's foreign neighbors, Mexico and Canada. The United States-Mexico-Canada Agreement, or the USMCA, was set in place to overturn the North American Fair Trade Agree, or NAFTA. The USMCA is more so revision of this 25 year old year old foreign trade agreement. The Trump administration classifies this agree as a hug win for themselves. Some of the biggest changes of the agreement impact the dairy and automobile industries. Under the USMCA, Canada has increased trade further with the American dairy industry by opening up trade in products such as milk and cheese. Regarding the automobile industry, companies manufacturing cars now much have at least 75% of the parts in the automobile sourced from either Canada, the US, or Mexico to qualify for zero tariffs. This number was only around 62% under NAFTA. The USMCA is set to be reviewed every 6 years, and if one of the three countries decides to pull away from the agreement, the USMCA will be repealed after 16 years. Do you think the USMCA is an improvement from NAFTA? Will the USMCA have more success the its predecessor trade agreement?
https://www.nytimes.com/2020/01/29/business/economy/usmca-deal.html
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