On January 29, President Trump signed an important trade agreement with Canada and Mexico, which he called “the largest, fairest, most balanced, and modern trade agreement ever reached.”
The United States-Mexico-Canada Agreement (USMCA) will replace the North American Free Trade Agreement (NAFTA) that has been in place for a quarter of a century. The USMCA restructures the free trade agreement among the three neighboring countries to be fairer and more equal.
The USMCA supports jobs in the U.S. manufacturing sector by requiring that three-quarters of the components of vehicles that receive preferential treatment be made in North America. The agreement provides incentives for U.S. trading partners to pay higher wages in the automotive sector.
The contract also contains essential protections for intellectual property, including trade secrets, digital services, and financial services. It establishes new standards around labor and the environment.
“We are very grateful for the close partnership and cooperation with Prime Minister Trudeau. And for our incredible friendship and the relationship we have developed with President López Obrador,” Trump said.
The president made his remarks at a January 29 ceremony at the White House, surrounded by more than 400 workers, business leaders, and elected officials.
The three countries conduct over $1.2 trillion in trade each year.
Source: share.america.gov