The United States-Mexico-Canada Free Trade Agreement, or USMCA, is a trade agreement that was signed by the three North American countries in November 2018. It is a replacement for the former North American Free Trade Agreement, or NAFTA, which had been in place since 1994.

The USMCA is designed to modernize and strengthen trade relationships between the United States, Mexico, and Canada. One of the main goals of the agreement is to increase market access for American farmers and businesses, particularly in the auto industry.

One of the key changes in the USMCA from NAFTA is the requirement that a certain percentage of a vehicle`s content must be made in North America (including minimum percentages for steel and aluminum) in order to qualify for duty-free treatment. This is intended to boost domestic production and create jobs in the auto industry.

Another major difference from NAFTA is the inclusion of new provisions on digital trade. The USMCA seeks to facilitate cross-border data flows and prevent countries from imposing unreasonable restrictions on the transfer of data.

The USMCA also includes stronger labor and environmental protections, including provisions for the protection of intellectual property and the enforcement of labor and environmental laws. These provisions are intended to level the playing field for workers and businesses and to promote sustainable development.

While the USMCA has been signed by all three countries, it has not yet been fully implemented. The agreement must be ratified by each country`s legislature before it can take effect.

Overall, the USMCA represents a significant step forward for trade relations between the United States, Mexico, and Canada. By modernizing and strengthening the agreement, the countries hope to create more opportunities for American businesses, workers, and farmers, while also promoting sustainable development and protecting the environment.