United States sign trade pact with Canada and Mexico to replace North American Free Trade Agreement (NAFTA)

The United States has signed trade pact with Canada and Mexico to replace the 24-year-old North American Free Trade Agreement (NAFTA) in Buenos Aires, Argentina. They signed an authorization for the deal on the sidelines of the Group of 20 (G20) summit 2018. The new US-Mexico-Canada Agreement (USMCA) has 34 chapters & is meant to govern more than $1tn worth of trade between the three countries. The pact has been tweaked to include changes for automakers, labor and environmental standards, intellectual property protections, and some digital trade provisions. It will give the US greater access to Canada’s dairy market and allows extra imports of Canadian cars. Now, the deal requires ratification by all three countries’ legislatures before taking effect.