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Us Mexico Trade Agreement 2019

Publicado el 10/5/2023

The United States-Mexico Trade Agreement of 2019: A Comprehensive Guide

In 2019, the United States and Mexico reached a historic trade agreement that replaced the North American Free Trade Agreement (NAFTA) of 1994. The new agreement, officially called the United States-Mexico-Canada Agreement (USMCA), aimed to modernize NAFTA`s provisions and better reflect the current economic landscape. In this article, we will provide an overview of the USMCA`s key provisions, their impact on U.S.-Mexico trade relations, and how they affect various industries.

Key Provisions of the USMCA

The USMCA includes several significant changes from NAFTA. Some of the key provisions are:

1. Rules of Origin: The USMCA requires a higher percentage of a product`s components to be sourced from North America in order to qualify for duty-free treatment. Specifically, automobiles must contain 75% North American content (up from 62.5% in NAFTA).

2. Labor Standards: The USMCA includes provisions that require Mexico to improve its labor laws and enforcement. Mexico must also allow independent labor unions and establish a new agency to monitor labor violations.

3. Environmental Standards: The USMCA includes provisions to protect the environment, including commitments to reduce air pollution and protect marine wildlife.

4. Intellectual Property: The USMCA includes provisions to protect intellectual property rights, including patents, trademarks, and copyrights. The agreement also includes a new chapter on digital trade that addresses issues such as e-commerce and data privacy.

Impact on U.S.-Mexico Trade Relations

The USMCA has been praised by both U.S. and Mexican officials as a significant improvement over NAFTA. The agreement is expected to increase economic growth and create jobs in both countries. Some experts predict that the USMCA could add up to $68.2 billion to the U.S. economy and $21.5 billion to the Mexican economy.

The agreement also improves market access for certain U.S. industries. For example, the dairy industry gained increased access to the Canadian market. However, some industries – including steel, aluminum, and auto manufacturing – have expressed concerns about the new rules of origin requirements, which could lead to increased costs.

How the USMCA Affects Different Industries

The USMCA affects different industries in different ways. Here are some of the key impacts:

1. Agriculture: The USMCA includes increased market access for U.S. dairy, poultry, and egg producers. The agreement also includes new rules for agricultural biotechnology and a commitment to reduce trade-distorting policies.

2. Auto Manufacturing: The USMCA`s new rules of origin requirements are expected to increase costs for auto manufacturers. However, the agreement also includes provisions to protect the industry from potential non-tariff barriers.

3. Energy: The USMCA includes provisions to protect energy investments and encourage cross-border trade. The agreement also includes commitments to reduce greenhouse gas emissions and promote energy efficiency.

4. Digital Trade: The USMCA`s new chapter on digital trade is expected to benefit tech companies by protecting intellectual property rights and promoting e-commerce. However, some experts have raised concerns about the potential impact on privacy.


The United States-Mexico Trade Agreement of 2019, or the USMCA, is a modernized version of the North American Free Trade Agreement (NAFTA) that aims to promote economic growth and job creation in the United States and Mexico. The new agreement includes several key provisions, including new rules of origin requirements and improvements in labor and environmental standards. While the USMCA has been praised by officials in both countries, some industries may face increased costs as a result of the new rules.

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