Categories
Investments glossary

What is the USMCA

The United States-Mexico-Canada Agreement, also known as the USMCA, is a trade deal between the three nations which was signed on November 30, 2018. The USMCA replaces the North American Free Trade Agreement (NAFTA), which had been in effect since January of 1994. Under the terms of NAFTA, tariffs on many goods passing between North America’s three major economic powers were gradually phased out. By 2008, tariffs on various agricultural and textiles products, automobiles, and other goods were reduced or eliminated. USMCA came about as a result of U.S. President Donald Trump’s efforts to replace NAFTA based on an argument that the terms of NAFTA were unfair to the United States. USMCA began as the U.S.-Mexico Trade Agreement, announced in late August of 2018. A few weeks later, on September 30, 2018, the United States and Canada formally agreed to replace NAFTA with the new agreement, and the USMCA was finalized a few weeks later.

Click to rate this post!
[Total: 0 Average: 0]

Leave a Reply

Your email address will not be published. Required fields are marked *