After US President Trump reneged on the NAFTA trade agreement, the US, Canada and Mexico agreed to the recast. Now they signed USMCA on the sidelines of the G20 summit in Buenos Aires.
The US, Mexico and Canada have signed their new USMCA (US-Mexico-Canada Agreement). Prior to the start of the G20 Summit in Buenos Aires, the parties signed their signatures to the North American Free Trade Agreement (NAFTA).
“This is a model agreement that will change the trading landscape forever,” said US President Donald Trump at the signing ceremony. On the Mexican side, outgoing President Enrique Peña Nieto signed. Canada’s Prime Minister Justin Trudeau signed for his country.
Trump had discontinued the NAFTA agreement, which had been in place since 1994, because he considered it to be a disadvantage for the United States. He urged the two neighboring states to renegotiate. By the end of September, the three states had agreed on the recast.
In the future, American farmers will be allowed to export significantly more dairy and dairy products to Canada. In return, the US government no longer insists on the abolition of the independent arbitration tribunal for commercial disputes. In addition, the Trump government drops the threatened introduction of car taxes.
The agreement affects nearly 500 million people, NAFTA agreement was concluded in 1994 between the United States, Canada and Mexico and governs one of the largest free trade areas in the world.
It affects nearly 500 million people and covers an area with an economic output of nearly $ 23 trillion (€ 19.79 trillion). The US trade volume with the two neighboring countries quadrupled since 1994 to $ 1.3 trillion.