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Feb 19, 2019

Renegotiating NAFTA: The United States–Mexico–Canada Agreement

Analysis by Gabriela Liñán

The United States of America, Mexico, and Canada reached an agreement on trade to modernize the North American Free Trade Agreement (NAFTA) on November 30, 2018 at the G20 Leaders’ Summit in Buenos Aires, Argentina. The United States–Mexico–Canada Agreement (USMCA) is expected to be mutually beneficial for the tripartite. For the past months, governments were short on details about the meaning of the new trade agreement. This paper aims to provide a better understanding of the new deal by introducing the trilateral trade between the three countries. Secondly, it highlights the most relevant chapters of the new agreement, and finally, it concludes by summarizing adjustments in several key areas and their potential impact in domestic politics for the tripartite.

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