What is the USMCA or T-MEC?


USMCA is the acronym in English of the new agreement between the United States, Canada and Mexico that comes to replace NAFTA / NAFTA, in Mexico it was recognized as the official name T-MEC (Treaty between Mexico, the United States and Canada).

This agreement was already signed on November 30, 2018, however, it has not yet entered into force until it is ratified by the corresponding Congresses of each country.

NAFTA began in 1994, and currently the negotiations between the three countries that comprise it had to be adjusted. The negotiations of this new agreement took 12 months. Initially, NAFTA emerged as a measure to compete with the economic growth that Asia was experiencing at the time.

Canada opens its dairy market

Previously, with NAFTA, Canada limited how much milk and cheese, among other dairy products, entered its country from the United States. It was a very protected market. Therefore, with this agreement, the US was able to enter the country with dairy products and an adjustment will be made in The fees.

Now Canada is opening its doors not only to dairy products, but also to poultry and eggs. In reciprocity, the United States is going to allow these products, peanuts and a restricted amount of sugar that come from Canada to enter the United States.

Renovation in the automotive industry

Canada agreed to a quota of 2.6 million vehicles exported to the United States in the event Trump imposes global tariffs of 25% on national security grounds.

75% of the auto parts sold in North America must be manufactured in these three countries so that it can be exported without tariffs. In the previous agreement, it only corresponded to 62.5%.

On the part of the US, approximately 40-45% of the total car must be manufactured by workers who earn at least 16USD per hour, this to avoid the relocation of factories to low-cost areas in Mexico.


It was constituted with a duration of 16 years, and must be reviewed by the three countries every 6 years to evaluate the agreements. NAFTA did not have a defined validity.

Commitments and changes

The nations agreed to adopt labor standards and practices in accordance with what is established by the International Labor Organization, at this point, they must enforce them. They will maintain the exchange rates determined by the market and will not engage in exchange manipulation and praised their commitment to fight corruption.

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