A new trade deal among Canada, Mexico, and the United States
takes effect today (Reuters), replacing the twenty-six-year-old North American Free Trade Agreement (NAFTA).
The negotiation of the U.S.-Mexico-Canada Agreement (USMCA) fulfilled a major campaign pledge of U.S. President Donald J. Trump, who called NAFTA the “worst trade deal ever made” and vowed to renegotiate it. The agreement will govern more than
$1 trillion in annual trade (Bloomberg) among the three countries and contains new rules, including stricter enforcement of labor standards and a requirement to manufacture cars with more North American–made parts to qualify for zero-tariff treatment. But trade tensions are already emerging; the United States is reportedly
considering reimposing tariffs (NYT) on Canadian aluminum, and U.S. lawmakers have voiced concern about labor rights in Mexico.