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The U.S.-Mexico-Mexico Agreement (USMCA) is a trade agreement between these parties. The USMCA replaced the North American Free Trade Agreement (NAFTA). On December 9, 2019, Fox News reported that negotiators from the three countries reached an agreement on implementation, paving the way for a final agreement within 24 hours and ratification by all three parties before the end of the year. Mexico has agreed to impose a minimum wage of $16 per hour for Mexican auto workers by a “neutral” third party. Mexico, which imports all of its aluminum, also objected to the provisions relating to the U.S. steel and aluminum content of automotive components. [37] The USMCA is expected to have very little impact on the economy. [108] An International Monetary Fund (IMF) discussion paper published at the end of March 2019 stated that the agreement would have a “negligible” impact on the general economy. [108] [113] The IMF study predicted that the USMCA “would have a negative impact on trade in the automotive, textile and clothing sectors, while achieving modest welfare gains, mainly due to improved access to the goods market, with a negligible impact on real GDP.” [113] The IMF study found that the economic benefits of the USMCA would be significantly increased, whether Trump`s trade war ended (i.e. when the United States lowered tariffs on steel and aluminum imports from Canada and Mexico and Canada and Mexico lowered retaliatory duties on imports from the United States) [113] In addition to the NAFTA-of-origin provisions , USMCA borrows significant credits from the Trans-Pacific Partnership (TPP) trade agreements and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPP). On April 3, 2020, Mexico announced its willingness to implement the agreement and joined Canada. [15] The agreement came into force on July 1, 2020.

[16] [17] [18] [19] The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, came into force on January 1, 1994. NAFTA has created economic growth and a rising standard of living for the people of the three member countries. By strengthening trade and investment rules and procedures across the continent, Nafta has proven to be a solid foundation for building Canada`s prosperity. NAFTA replaced Canada-U.S.