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Will the New NAFTA Deliver?
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Will the New NAFTA Deliver?

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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President Trump last week claimed victory in clinching a new trade deal with Canada to replace the North American Free Trade Agreement (NAFTA) with the so-called U.S.-Mexico-Canada Agreement (USMCA), a month after Mexico agreed to come on board. According to experts at Wharton and elsewhere, the USMCA is certainly an improvement over NAFTA, although it is too early to conclude which country gains the most. Also, it does not necessarily pave the way to improve the sour trade relations between the U.S. and its other trading partners globally, they said. Immediate gains will be seen on several fronts with the USMCA. The agreement reflects changes over the years in the economics of trade, and “ modernizes ” NAFTA with respect to intellectual property, digital trade, financial services and environmental issues. It also brings improved market access for U.S. dairy farmers and provides for a bigger share for North American content in automotive manufacturing – from the existing 62.5% to 75%.…

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