United States (US) has reached agreement with Canada and Mexico to lift tariffs on steel and aluminium and corresponding retaliatory tariffs. Elimination of these tariffs is expected to remove significant barrier to ratification of US-Mexico-Canada Agreement (USMCA).
US-Mexico-Canada Agreement (USMCA)
It is sometimes referred to as "New NAFTA" in reference to previous trilateral agreement it is meant to supersede North American Free Trade Agreement (NAFTA).
It is new free trade agreement signed by US President Donald Trump, Mexican President Enrique Pena Nieto, and Canadian Prime Minister Justin Trudeau in November 2018. It is intended to last 16 years and will be reviewed every 6 years.
As compared to NAFTA, it includes stronger protections for workers, tough environmental rules, updates trade relationship to cover digital economy and provides tougher intellectual property protections.
It also adds provisions to prevent “manipulation” of trade rules, including covering currency values, and controls over outside countries trying to take advantage of the duty-free market.
It gives US greater access to dairy markets of Canada. (Earlier Canada’s tariffs up to 275%% have kept most foreign milk out of its market). It empowers Canada and Mexico to have quota of 2.6 million cars they can export to US as protection for their car industry, if US imposes 25%%global tariff on car imports,