On Sunday night, the U.S. and Canada struck a deal to revise the 24-year-old North American Free Trade Agreement (NAFTA), replacing it with a new deal titled the “United States-Mexico-Canada Agreement,” or USMCA.
USMCA allowed Canada to rejoin the pact that was made between the U.S. and Mexico in August.
The new pact includes enforceable rules to deter countries from artificially weakening their exchange rates to gain trade advantages, a global first.
Under the agreement, Mexico and Canada got similar deals that would protect them from any national-security tariffs the Trump administration is considering on vehicles and auto parts.
The new agreement must be ratified by Congress next year to take effect.
Food For Thought
What are the pros and cons of the new NAFTA? Is it a better agreement than its predecessor?