After 13 months of negotiations, the United States, Mexico and
Canada have concluded the United States-Mexico-Canada Agreement
(USMCA). The USMCA is designed to replace the quarter-century-old
North American Free Trade Agreement (NAFTA). The new agreement,
reached on September 30, 2018, should temper the uncertainty
that has hung over access for Canadian goods and services to the
U.S. market and improve business confidence in Canada. However, the
USMCA will not come into force until it is ratified, which may not
occur before early 2019.
Overall, the USMCA maintains the regional integration of the
North American market, while providing some greater market access,
higher regional content requirements, and mechanisms for
inter-governmental cooperation. This update provides an overview of
some of the key changes that the USMCA introduces.
