The United States and Canada have a long-standing economic partnership and trade agreement, with the most recent version being the Canada-United States-Mexico Agreement (CUSMA). This agreement, which was signed in 2018 and came into effect in July 2020, aims to modernize and improve the North American Free Trade Agreement (NAFTA), which was in place since 1994.
The CUSMA includes several changes to the original NAFTA, including updates to digital trade, intellectual property protection, and labour standards. It also includes new rules on automotive manufacturing, requiring a higher percentage of parts to be made in North America in order for a vehicle to qualify for duty-free status.
The agreement has been hailed as a win for all three countries, as it provides greater certainty and predictability for businesses and helps to maintain North America`s competitiveness in a rapidly changing global economy. The deal also includes provisions that help to protect the environment and promote sustainable development, which has been a key priority for all three countries.
One area of contention in the negotiations was the dairy industry in Canada, with the United States pushing for greater access to the Canadian market. Ultimately, a compromise was reached that allows for increased U.S. exports of certain dairy products, but maintains Canada`s supply management system for other dairy products.
Overall, the CUSMA represents a significant step forward in the economic relationship between the United States and Canada, and has been praised for its modernization and forward-thinking approach. As with any trade agreement, however, there are likely to be challenges and areas for improvement over time. Nevertheless, the CUSMA is a promising development for North American trade and cooperation.