USMCA (2018-Present)
The USMCA is a trade agreement that builds off of NAFTA. The agreement has officially been signed on November 30th, 2018. The trade was signed by Presidents (and Prime Minister), Trudeau, Nieto & Trump. This trade agreement was signed because there were threats of breaking up NAFTA by withdrawing from it by Trump, whom withdrew from other agreements such as the Paris Agreement and turning away from negotiations with the Trans-Pacific-Partnership and also increasing tariffs with China, all of which reinforces his determination to withdraw from NAFTA if changes are not made. Now the agreement is waiting to be ratified by each countries legislature before it can come into effect. This agreement has major changes such as it gives the United States more access to Canada's dairy market. The local content requirement mentioned before has again been changed, now from 62.5% to 75% with an added rule that it has to be made by workers with a salary of US$16 per hour.
USMCA. This image is quite similar to the NAFTA signing back in 1992.
| FTA | Local Content Requirement |
|---|---|
| CUSFTA | 50% |
| NAFTA | 62.5% |
| USMCA | 75% |