President Trump signed on January 29 a landmark trade deal with Canada and Mexico that he called “the largest, fairest, most balanced, and modern trade agreement ever achieved.”
The United States-Mexico-Canada Agreement (USMCA) will replace the quarter-century-old North American Free Trade Agreement (NAFTA). The USMCA restructures the free trade agreement between the three neighboring countries to be fairer and more equal.
The USMCA supports U.S. manufacturing jobs by requiring that three-quarters of vehicle components that get preferential treatment be made in North America. It provides incentives for U.S. trading partners to pay higher wages in the auto sector.
The agreement also contains critical protections for intellectual property, including trade secrets, digital services and financial services. It establishes new standards around labor and the environment.
“We’re very grateful for the close partnership and cooperation with Prime Minister Trudeau. And for our incredible friendship and the relationship that we’ve developed with President López Obrador,” Trump said.
The president made his remarks at a January 29 ceremony in the White House surrounded by more than 400 workers, business leaders and elected officials.
The three countries engage in more than $1.2 trillion of trade each year.