United States–Mexico–Canada Agreement

The Agreement between the United States of America, Mexico, and Canada (USMCA) is a free trade agreement between the United States, Mexico, and Canada. It replaced the North American Free Trade Agreement (NAFTA) implemented in 1994, and is sometimes characterized as "NAFTA 2.0", or "New NAFTA", since it largely maintains or updates the provisions of its predecessor. USMCA created one of the world's largest free trade zones, with a population of more than 510 million people and an economy of $30.997 trillion in nominal GDP — nearly 30 percent of the global economy.

All sides came to a formal agreement on October 1, 2018, and U.S. president Donald Trump proposed USMCA during the G20 Summit the following month, where it was signed by himself, Mexican President Enrique Peña Nieto, and Canadian Prime Minister Justin Trudeau. A revised version reflecting additional consultations was signed on December 10, 2019 and ratified by all three countries, with Canada being the last to ratify on March 13, 2020. Following notification by all three governments that the provisions were ready for domestic implementation, the agreement came into effect on July 1, 2020.

USMCA is primarily a modernization of NAFTA, namely with respect to intellectual property and digital trade, and borrows language from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which Canada and Mexico are signatories. Key changes from its predecessor include increased environmental and working regulations; greater incentives for automobile production in the U.S. (with quotas for Canadian and Mexican automotive production); more access to Canada's dairy market; and an increased duty-free limit for Canadians who buy U.S. goods online.