United States-Mexico-Canada Agreement (USMCA)

United States-Mexico-Canada Agreement (USMCA). The Agreement between the U.S., Mexico, and Canada (USMCA) is a free trade agreement between the United States, Mexico, and Canada. It replaced the North American Free Trade Agreement (NAFTA) implemented in 1994, and is sometimes characterized as “NAFTA 2.0,” or the “New NAFTA,” since it largely maintains or updates the provisions of its predecessor. USMCA—North America—is one of the world’s largest free trade zones, with a population of more than 510 million people and an economy of $30.997 trillion in nominal GDP — nearly 30% of the global economy.