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The USMCA: Implications for USA Canada and Mexico

The USMCA: Implications for USA Canada and Mexico


United States Mexico Canada Agreement (USMCA) And Its Implications

How Nafta Was Saved The Bitter Fight And The Final Breakthrough

What Did They Agree To?

What Does It Mean?

As stated by McGuire (2018), the economic growth of a nation greatly depends on the kind of trade and commerce relation that it shares with its neighboring nations since it not only facilitates economic growth but also helps in the reduction of their unemployment rate as well. Laurens et al. (2019) are of the viewpoint that the trade and commerce relations among USA, Canada and Mexico had not been ideal one and this had adversely affected the economic growth of the nations of all these three nations. Thus, the United States-Mexico-Canada Agreement (USMCA) had been proposed which seeks to remedy this issue and thereby to facilitate the economic growth or development of these three nations by offering them free trade, adequate labor facilities and others. The purpose of this paper is to undertake a critical analysis of the article “The USMCA explained: Winners and losers, what’s in and what’s out” which highlights the implications of the concerned agreement for the three nations under discussion here.

Proudfoot and Markusoff (2020) in the article under discussion here highlight the fact that all the three nations, namely, USA, Canada and Mexico, are likely to derive ample amount of benefits through the proposed USMCA. More importantly, this particular agreement is likely to especially benefit the automobile industry, diary industry and the steel industry of the nations of Canada and Mexico and also likely to safeguard them against the exploitation or for that matter the dominance of the industries related to these industries of the nation of USA (Proudfoot and Markusoff 2020). Furthermore, through this particular agreement the nations involved in the concerned agreement have the option to file complaints or for that matter disputes if they feel that the conduct of the other nations is not as per the terms of this agreement. In this relation, it needs to be said that the terms of this particular agreement are in synchronicity with the some of the basic concepts of governance and also international trade and commerce. For instance, this particular agreement can be seen as an initiative of the three nations involved in the same to offer adequate economic or employment to its people and also facilitate their economic growth as well which in turn will positively affect the quality of life that they lead (Macdonald 2019). In addition to these, the precepts of this particular agreement would also facilitate the effective usage of the process of globalization and thereby would lead to the growth of trade and commerce all three nations involved in the process which once again would benefit their national economy.

To conclude, the terms of the United States-Mexico-Canada Agreement by facilitating free trade, offering adequate employment opportunities and others are likely to positively affect the national economy of all three nations involved in the agreement. More importantly, this would also broaden the growth or development opportunities which are presently available to the automobile, steel, dairy and other industries of the nations of Mexico and Canada and thereby lead to the improvement of the quality of life led by the people of these nations.


Laurens, N., Dove, Z., Morin, J.F. and Jinnah, S., 2019. NAFTA 2.0: The Greenest Trade Agreement Ever?. World Trade Review, 18(4), pp.659-677.

Macdonald, L., 2019. Upsetting the Apple Cart? Implications of the NAFTA Re-Negotiations for Canada–US Relations. In Canada–US Relations (pp. 193-213). Palgrave Macmillan, Cham.

McGuire, W., 2018. A State-Level View of NAFTA: Economic Implications and Policy Options. Ohio St. LJ, 79, p.737.

Proudfoot, S. and Markusoff, J. 2020. The USMCA explained: Winners and losers, what’s in and what’s out – [online] Available at: [Accessed 21 Jan. 2020].

The USMCA: Implications for USA Canada and Mexico


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