The United States and Mexico have had a long-standing trade relationship that has been beneficial for both countries. The two countries have recently updated their trade agreement, and here are some facts about the new deal.
The US-Mexico-Canada Agreement (USMCA) was signed by the respective countries` leaders in November 2018 as an update to the North American Free Trade Agreement (NAFTA). USMCA is a comprehensive agreement that covers many aspects of trade between the two countries, including agriculture, automotive, intellectual property, and labor.
Under the new agreement, the majority of goods traded between the US and Mexico will be duty-free. This means that businesses in both countries can save money on tariffs and increase their trade volume. The agreement also includes new rules that encourage the use of domestic materials in auto manufacturing, which was a sticking point in the previous NAFTA agreement.
Another important part of the USMCA is that it focuses on labor conditions in Mexico. The country has agreed to improve workers` rights and wages, which will help to level the playing field for US businesses and protect workers` rights.
One area that hasn`t changed much between the two agreements is agriculture. US farmers will still have access to the Mexican market, and Mexican farmers will still be able to sell their products to the US. However, some adjustments have been made to dairy and poultry trade, which will benefit American farmers.
Overall, the USMCA is a win for both countries. It updates the outdated NAFTA agreement and will help to facilitate trade between the US and Mexico. The new labor provisions will also help to close the wage gap between the two countries and ensure workers are treated fairly. US businesses are likely to benefit from the updated agreement, and consumers will see more affordable goods as a result.