The trade agreement between the United States, Mexico, and Canada, also known as the USMCA, was signed into law on November 30, 2018. This agreement replaces the North American Free Trade Agreement (NAFTA), which had been in place since 1994.

The USMCA is a comprehensive trade agreement that covers a wide range of topics, including intellectual property rights, environmental protection, and labor standards. It also includes provisions aimed at modernizing the agreement and addressing issues that have arisen since NAFTA was implemented.

One of the main changes in the USMCA is the requirement that a higher percentage of a vehicle`s components be made in North America in order for it to qualify for duty-free treatment. This provision is designed to encourage more production in the region and reduce the reliance on components sourced from non-North American suppliers.

Another key change is the inclusion of a clause that requires parties to notify each other before entering into trade negotiations with non-market economies. This provision is aimed at preventing countries like China from gaining an unfair advantage by negotiating separate trade deals with the USMCA countries.

Overall, the USMCA is seen as a positive development for North American trade and a step towards modernizing the agreement to reflect the current economic climate. It is expected to provide benefits for all three countries involved and establish a stronger foundation for future trade relations.