(Reuters) – The U.S.-Mexico-Canada trade agreement (USMCA) will launch on Wednesday, replacing the 26-year-old North American Free Trade Agreement (NAFTA), as the global economy and international trade reel from the fallout of the coronavirus pandemic.
The flow of goods among the three USMCA members – which totaled $1.2 trillion last year – in April dropped to the lowest level in more than a decade. Meanwhile, the jailing of a Mexican labor lawyer and independent union leader has reignited concern about the challenges of meeting the USMCA’s labor rights provisions.
Some industries, including automakers, had been arguing for a delayed implementation of the new trade pact because of the difficulties they are facing from the coronavirus pandemic.
Here are some of the key changes the new regional pact will usher in:
One of the biggest changes requires increased North American content in cars built in the region, to 75% from