A new trade deal was made between the United States, Mexico, and Canada. The rules in the pact are about how the three countries can buy and sell things with each other.
After three years of talking, the three countries reached a new trade agreement. The United States Mexico Canada Agreement (USMCA) aims to benefit North American workers, businesses, farmers, and ranchers.
It starts on July 1, 2020. The earliest it can be changed is in 2026.
The USMCA is around 1,800 pages long.
Here are some of the key features:
- Cars must have three-quarters of their parts made in North America.
- Nearly half of cars or trucks need to be made with parts by workers getting at least $16 per hour.
- Canada and the U.S. will trade more milk and butter with each other.
- Stricter environmental rules for car factories, forestry, fishing, and plastic litter.
Congress approved the USMCA in December 2019. The Canadian Parliament gave it the thumbs up in March 2020. Mexico’s Senate passed the treaty in December 2019.
The next step will be to make sure the rules are obeyed. Some say that will be the hardest part.
Will the USMCA help the three countries to improve their economies? North America will have to wait six years before the treaty can be reviewed.