Answer:
The United States, Canada and Mexico are countries in North America that were part of a trade treaty known as NAFTA (North American Free Trade Agreement). This has now been replaced by a new treaty known as the USMCA, or "Nafta 2.0". This replacement occurred after a long negotiation between the governments of the participating countries and brings new specifications for the trade established between its members.
USMCA is an acronym in English that indicates United States - Mexico - Canada Agreement started in 2017 and signed in 2018.
In order to modernize the old agreement between the three North American countries: Canada, the United States and Mexico, the current President of the United States has proposed some changes in relation to trade between countries. The idea is to encourage a free trade area among members through a new version.
What changes?
The main changes in relation to the old agreement, NAFTA, now renewed by the USMCA, are:
Name: The old agreement, called NAFTA, now gives way to the USMCA.
Automotive sector: The new agreement aims to prevent industries from moving to places with cheaper labor. The idea is that around 75% of car parts are manufactured in the United States by workers who earn an average of $ 16 an hour.
Dairy sector: Canada has agreed to lower barriers in the dairy sector, as the United States government rated the protection of dairy products as unfair with high import tariffs. Thus, the dairy market between Canada and the United States expands.
Validity of the agreement: Unlike NAFTA, which did not have a determined time to be in force, the USMCA will cease to be in effect in sixteen years, therefore, a validity clause has been established.
Intellectual property: The protection of intellectual property already existed. The new agreement proposed to increase this protection by offering it to pharmacists and agricultural innovators. This protection also extends to the copyright of writers and composers.
E-commerce: The USMCA vetoes customs duties on products distributed digitally, such as games and electronic books.
