October 2, 2018
The U.S. and Canada reached a deal to revise the North American Free Trade Agreement, which will allow Canada to join the accord that was reached in August between the U.S. and Mexico. The new agreement is called the U.S.-Mexico-Canada Agreement, or USMCA, and is aimed at bringing more jobs into the U.S., as well as imposing more restrictive commerce on Canada and Mexico, its main export customer.
President Donald Trump hailed the deal as a win for U.S. workers. At the same time, investors were granted a reprieve on key pillars of NAFTA that survived the President’s hardline stance on global commerce.
The new deal will bring significant changes to rules governing trade since 1994. Perhaps the biggest impact will be on autos, the region’s largest industry. The accord will require a greater portion of vehicles to be made in North America, and by high-wage labor in the U.S. and Canada.
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