USMCA to launch on July 1

The United States-Mexico-Canada Free Trade Agreement (USMCA) will come into effect on July 1, the trilateral accord that replaces the North American Free Trade Agreement (NAFTA), which came into effect in January 1994.

The USMCA will launch one month later than originally planned, as the three countries face the COVID-19 pandemic, US Trade Representative Robert Lighthizer confirmed on Friday.

Lighthizer (pictured) said both Mexico and Canada had taken the necessary measures to comply with their commitments under the new agreement. 

Renegotiating NAFTA and replacing it with a new deal was one of the campaign pledges of US President Donald Trump, who had bemoaned NAFTA as not being sufficiently beneficial to the US economy and US companies. 

Among the modifications made are new rules of origin for carmakers, as well as regulations guaranteeing higher wages for Mexican workers engaged in the manufacture of vehicles for export within the three countries. 

“The new United States-Mexico-Canada Agreement (USMCA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. When finalised and implemented, the agreement will create more balanced, reciprocal trade that supports high-paying jobs for Americans and grows the North American economy,” according to a statement from the United States Trade Representative.