Summary of the US/Mexico/Canada Trade Agreement
It is essentially NAFTA updated.
Cars: Automobiles must have 75 percent of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs. This is an increase from 62.5 percent under NAFTA.
Wages in the car industry: 40 to 45 percent of automobile parts have to be made by workers who earn at least $16 an hour by 2023.
US farmers get more access to Canada’s dairy market.
Intellectual property: The deal extends copyrights from 50 to 70 years after the death of the author. It extends the period that a pharmaceutical drug can be protected from generic competition.
Internet: It prohibits tariffs on things like music and e-books, and adds protections for internet companies.
Section 232 national security tariffs on steel and aluminum: Canada and Mexico didn’t get protections from these tariffs.
The trade agreement has to be ratified by all three governments.
Prepared by: Lucien Wulsin