USMCA Fully Implemented in North America

The new U.S. trade deal with Mexico and Canada is officially in force. The U.S.-Mexico-Canada Trade Agreement replaces the 26-year-old North American Free Trade Agreement and brings to a close President Donald Trump’s threat to break apart the three-nation, $1.4 trillion free trade zone. Politico says officials in all three countries are celebrating that the deal is taking effect as each nation looks for some certainty during the COVID-19 outbreak. However, there are some tensions brewing between the U.S. and Canada regarding aluminum. President Trump recently threatened to reimpose tariffs on imports of aluminum from Canada. The U.S. could impose a ten percent duty if Canada doesn’t agree to quotas to help slow the surge of its aluminum exports, which would likely bring retaliation from Ottawa. Business leaders have been quick to ask the U.S. President not to reimpose the tariffs as they celebrate USMCA. South of the border, some of the biggest issues are between the U.S. and Mexico. U.S. Trade Representative Robert Lighthizer says he expects fights with Mexico regarding labor, biotechnology, intellectual property, and energy. The Trump administration, Democrats, and labor unions will all be paying close attention to see if Mexico lives up to its labor requirements.