The United States-Mexico-Canada Agreement: A Quick Look Inside
WASHINGTON—The United States, Canada and Mexico came to a last minute agreement last Sunday on a revised trade deal called the United States-Mexico-Canada Agreement or USMCA, reports CNN. President Donald Trump and his Mexican and Canadian counterparts are expected to sign the deal by the end of November. It will then be up to Congress to approve the deal, which is likely to come up for a vote next year.
One key area of change between the nearly 25-year-old NAFTA agreement and the provisional USMCA involves car manufacturing. Specifically, the new deal will require more of a vehicle's parts to be made in North America in order for the car to be free from tariffs. It requires that 75 percent of the parts must be made in Canada, Mexico or the United States, about 12 percentage points higher than under the original NAFTA.
The provision will help keep the production of car parts in the United States and bring back some production that moved abroad. Ford Motor Co. applauded the agreement because it will "support an integrated, globally competitive automotive business in North America