The US Mexico Trade Agreement Has Entered Into Force And Is Not Caught Up With The Pandemic.

The United States Mexico Canada agreement (USMCA) is regarded as the beginning of the new era of North American trade. Unfortunately, the agreement came to coincide with the outbreak of the 2019 coronavirus disease (COVID-19, commonly known as Wuhan pneumonia) in July 1st (2020).

Agence France-Presse reported that after the entry into force of USMCA, nearly 500 million consumers in the United States, Mexico and Canada will be aggregated into a single market, and the gross domestic product (GDP) of the 3 economies will account for about 27% of global GDP in 2019, and the trade volume between them will amount to as high as 1 trillion and 200 billion US dollars.

However, this is all the case before the outbreak. These countries are now blocking some of the border. The International Monetary Fund (IMF) has greatly revised the economic growth expectations of the 3 countries this year.

USMCA replaced the 1994 North American Free Trade Agreement (NAFTA). President Trump previously criticized NAFTA for injustice and undermining American jobs, so that the United States, Mexico and Canada could resume their USMCA negotiations.

Joseph Semsar, director of international trade at the US Department of Commerce, said in June 30th: "USMCA's entry into force is related to a broader trade agenda with the goal of pursuing free, fair and reciprocal transactions with all our trading partners. "

"We believe that USMCA will ensure North America's status as a locomotive of the world economy," she said in a video conference held at Wilson Center, a think-tank in Washington, D.C., and this agreement will also create high salaries for Americans, Canadians and Mexicans. "