The US, Canada, and Mexico have agreed to revise NAFTA. The new proposed trade deal is called the US-Mexico-Canada Agreement, or USMCA. Let’s explore the economic impacts of the revised agreement.

1. Benefits for American Workers, Farmers, and Businesses

Because the US is the world's largest importer of agricultural products, fair trade agreements with its trading partners are critical to the country's economy. The USMCA includes strong labor standards that will help ensure that workers in all three countries are treated fairly by their employers and have equal access to job opportunities.

2. More Manufacturing Jobs in the US

The USMCA incentivizes manufacturers to invest in North America by strengthening rules of origin requirements on cars. The new deal will require 75% of auto content to be made in the US, Canada, or Mexico, starting with 2023 models — up from 62% under NAFTA. It also requires 30% of auto content to be made by workers earning at least $16 per hour — which will benefit workers in both countries, especially those in Mexico, where they earn much less than US auto workers.

3. Boosts US Agricultural Exports to Canada and Mexico

The new agreement will open up opportunities for US agricultural exports to Mexico and Canada as well. It will eliminate non-tariff barriers on agricultural goods and create new rules of origin to ensure that products sold as "Made in North America" are genuinely made in North America.

4. Improved Food Safety and Transparency in Supply Chains

USMCA requires that each country commits to applying its laws regarding the safety and labeling of food products. The agreement also prohibits using unapproved genetically modified products currently used in some Mexican fields and requires labeling if they are present.

5. Increases Intellectual Property Standards to Protect Innovation

The new agreement will strengthen intellectual property protections for US innovators by extending patent protections for biologics to 10 years, which is essential for US pharmaceutical companies that invest billions of dollars in research and development in finding cures for cancer, diabetes, and other serious illnesses. It also includes new protections for US technology used in autonomous vehicles that will help keep American automobile manufacturers competitive with their European counterparts, who are also developing self-driving cars that could be sold globally.

The USMCA preserves much of its predecessor's core. Most provisions are either unchanged or only slightly altered. While it's too early to conclude the economic impacts, it seems clear that the new agreement will not be as disruptive as some have described. It is more likely that this trade deal will positively impact all three countries over time – provided, of course, that it is implemented and enforced.

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