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Trade Agreement between Mexico Canada and the United States

The trade agreement between Mexico, Canada, and the United States, also known as the USMCA or CUSMA, is a trilateral deal that replaced the North American Free Trade Agreement (NAFTA) in 2020. This agreement aims to modernize and enhance trade relations between the three countries in various industries and sectors, including agriculture, manufacturing, and digital commerce. In this article, we will explore the key components and benefits of this trade agreement.

Key Components of the USMCA

The USMCA has many key components that aim to create a fair and level playing field for trade between the three countries. One of the most significant changes is that it increases the regional content requirement for automobiles from 62.5% to 75%. This move is designed to promote the use of domestic materials and suppliers and provide more job opportunities in the United States, Mexico, and Canada.

The agreement also seeks to protect intellectual property rights by providing stronger copyright and patent protections for pharmaceutical drugs. Additionally, it includes a chapter on digital trade, which establishes guidelines for cross-border data flows, e-commerce, and data privacy in the digital marketplace.

Benefits of the USMCA

The USMCA provides several benefits for the three countries involved, including:

1. Increase in Jobs: The trade agreement is expected to create new job opportunities and boost economic growth in the three countries. This is because it encourages domestic production and reduces barriers to trade in many industries.

2. Strengthened Labor and Environmental Protections: The USMCA includes provisions that aim to improve labor conditions and environmental protections in the three countries. This includes commitments to enforce labor laws and regulations and to implement measures to address air and water pollution.

3. Increased Access to Markets: The USMCA provides improved market access for agricultural products and eliminates some non-tariff barriers that previously hindered trade between the three countries. This increased access to markets is expected to improve the business environment for small and medium-sized enterprises.


In conclusion, the USMCA has a significant impact on trade relationships between Mexico, Canada, and the United States. The agreement is designed to create new job opportunities, promote domestic production, and improve labor and environmental protections. These changes are expected to boost economic growth and enhance trade relations between the three countries. By understanding the key components and benefits of the USMCA, businesses and individuals can take advantage of the opportunities presented by this new trade agreement.