Breadcrumb

United States-Mexico-Canada Agreement

The livestream of the February 7, 2024 USMCA autos public hearing can be viewed at https://www.ustr.gov/live starting at 10:00am EST.

The United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and grow the North American economy.

Agreement highlights include:

•   Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products, and disciplines on currency manipulation.

•  Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening food and agriculture trade in North America.

•   Supporting a 21st Century economy through new protections for U.S. intellectual property, and ensuring opportunities for trade in U.S. services.

•   New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the Agreement.

To view the full text of the agreement between the United States, Mexico and Canada, click here.

To view the main USMCA webpage, click here.

 

USMCA Trade & Investment Summary

U.S. goods and services trade with USMCA totaled an estimated $1.8 trillion in 2022. Exports were $789.7 billion; imports were $974.3 billion. The U.S. goods and services trade deficit with USMCA was $184.6 billion in 2022.

U.S. goods exports to USMCA in 2022 were $680.8 billion, up 16.0 percent ($94.1 billion) from 2021 and up 34 percent from 2012. U.S. goods imports from USMCA totaled $891.3 billion in 2022, up 20.5 percent ($151.5 billion) from 2021, and up 48 percent from 2012. U.S. exports to USMCA account for 33.0 percent of overall U.S. exports in 2022. The U.S. goods trade deficit with USMCA was $210.6 billion in 2022, a 37.5 percent increase ($57.4 billion) over 2021.

U.S. exports of services to USMCA were an estimated $109.0 billion in 2022, 23.6 percent ($21 billion) more than 2021, and 17 percent greater than 2012 levels. U.S. imports of services from USMCA were an estimated $83.0 billion in 2022, 27.0 percent ($17.6 billion) more than 2021, and 66 percent greater than 2012 levels. Leading services exports from the U.S. to USMCA were in the travel, professional and management services, and financial services sectors. The United States has a services trade surplus of an estimated $26.0 billion with USMCA in 2022, up 14.0 percent from 2021.

U.S. foreign direct investment (FDI) in USMCA (stock) was $569.0 billion in 2022, a 9.5 percent increase from 2021. U.S. direct investment in USMCA is led by manufacturing, nonbank holding companies, and finance and insurance.

USMCA's FDI in the United States (stock) was $623.1 billion in 2022, up 8.0 percent from 2021. USMCA's direct investment in the U.S. is led by finance and insurance, manufacturing, and depository institutions.