United States-Mexico-Canada Agreement (USMCA)
The United States-Mexico-Canada Agreement (USMCA) is the successor to the North American Free Trade Agreement (NAFTA), which was implemented on January 1, 1994. NAFTA was an agreement among the United States, Canada and Mexico designed to promote trade between the three countries.
NAFTA was the first trade agreement among developed countries to include investor-state dispute settlement (ISDS) provisions. ISDS provisions protect U.S. companies investing abroad by enabling trade disputes to be settled by a neutral, international arbitration panel.
The new free trade agreement, USMCA, retains important provisions that will continue to protect investments that U.S. oil and gas companies have made in Mexico and Canada.
- NAFTA was a catalyst for U.S. economic growth. Since its enactment in 1994, U.S. exports to Mexico have increased by 485%, and U.S. exports to Canada have increased by 181%.
- Free trade between the three countries has driven North American energy security.
- Crude oil from Canada and Mexico are largely refined in the United States, which supports thousands of high-paying American jobs and enabled the U.S. to become a net exporter of refined products.
- Thanks to the precedent set by NAFTA, ISDS provisions are now found in trade agreements around the world, further protecting U.S. investments abroad.