Introduction
After more than a year of negotiations, Canada
reached a new free-trade agreement with Mexico
and the United States minutes before the midnight deadline
on September 30, 2018.
The United States-Mexico-Canada Agreement (USMCA) will
replace the North America Free Trade Agreement (NAFTA).
NAFTA came into force on January 1, 1994, creating what was at that
time the largest free-trade region in the world.
The USMCA contains 34 chapters and 12 side
letters and covers a range of topics, including
those related to agriculture, rules of origin, dispute
resolution and e-commerce. Among other impacts on Canadian
business, the USMCA will open Canada's dairy market to
U.S. producers, impose a quota on automotive-content
originating in Canada and Mexico, and increase the duty-free
limit for Canadians who buy U.S. goods online from $20 to
$150.
