1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites

New American trade deal to take effect in July

April 25, 2020

The new deal is set to replace the North American Free Trade Agreement, which US President Donald Trump claimed was unfair. It will come into force on July 1.

 U.S. President Donald Trump, Canada's Prime Minister Justin Trudeau and Mexico's President Enrique Pena Nieto attend the USMCA signing ceremony before the G20 leaders summit in Buenos Aires, Argentina November 30, 2018.
Image: Reuters/K. Lamarque

The United States-Mexico-Canada Agreement (USMCA) will come into effect on July 1, replacing the 26-year-old North American Free Trade Agreement (NAFTA), the US Trade office said in a statement.

"The USMCA's entry into force marks the beginning of a historic new chapter for North American trade by supporting more balanced, reciprocal trade, leading to freer markets, fairer trade, and robust economic growth in North America," the statement said. 

US President Donald Trump had criticized NAFTA for being unfair towards US business, an assessment in which he was backed by multiple labor unions and economic populists. Even though overall economic output was receiving a boost with new employment opportunities, many believed that some well-paying jobs in the US were being lost.

Read more: US, Mexico, Canada sign USMCA trade deal

The new deal has stricter labor laws that could move jobs from Mexico to the US or Canada. It also brings about changes to auto manufacturing, e-commerce, protection of intellectual property and more.

According to the US, it would "deliver more jobs, provide stronger labor protections and expand market access, creating new opportunities for American workers, farmers and ranchers."

The USMCA was signed in November 2018, after Trump threatened to scrap NAFTA without a new deal in place. After some amendments, Mexico ratified the deal in December 2019, following which Trump signed it into law.

The Canadian parliament was the last to adopt it in March this year.

see/aw (dpa, AP, AFP)

Every evening, DW's editors send out a selection of the day's hard news and quality feature journalism. You can sign up to receive it directly here.