After extended negotiations, Canada, the United States, and Mexico have all agreed to a new trade deal that will replace the North American Free Trade Agreement (NAFTA). The new agreement, which is called the United States-Mexico-Canada Agreement (USMCA) is being hailed as a win for all three countries. According to Reuters, the new deal ensures the survival of the “open-trade zone” across the continent, which is worth an estimated $1.2 trillion.
“Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico,” President Trump said on Monday night via Twitter.
“The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduce Trade Barriers to the U.S. and will bring all three Great Nations closer together in competition with the rest of the world. The USMCA is a historic transaction!”
According to Reuters, the United States stands to gain more jobs, especially in manufacturing, as well as allowing some industries more access to foreign markets. The U.S. dairy industry, in particular, won a significant concession that allows farmers to sell their product in Canada, something which was restricted under NAFTA.