Jan. 29, 2020—President Donald Trump signed the United States-Mexico-Canada Agreement on Wednesday, ending a long legislative process and replacing the older North American Free Trade Agreement.
The new agreement has similar underlying free trade traits that NAFTA did, but it's updated to account for digital commerce and online business, the Associate Press reports.
It also has new rules for auto manufacturing. According to the AP report, companies must have 75 percent of car and parts sourced in North America to receive benefits of the USMCA.
Additionally, 40 percent or more of vehicles need to originate in places where workers earn at least $16 per hour. That move, the AP notes, benefits the United States and Canada more than Mexico.
