The United States-Mexico-Canada Agreement, commonly known as the USMCA, is a trade agreement that was signed by the three North American countries on November 30, 2018. The agreement replaces the North American Free Trade Agreement (NAFTA) that had been in place since 1994.

The USMCA aims to modernize and update NAFTA, particularly in areas such as digital trade and intellectual property rights. The agreement also includes new provisions on labor and the environment, as well as new rules on the automotive industry.

One of the key changes in the USMCA is a higher requirement for North American content in automobiles. Under the new agreement, 75% of the content of a car or truck must be made in North America, up from 62.5% under NAFTA. Additionally, 40-45% of that content must be produced by workers earning at least $16 per hour.

Another notable change in the USMCA is the inclusion of a chapter on digital trade. The chapter includes provisions on cross-border data flows, data localization, and data privacy. The USMCA also includes stronger protections for intellectual property rights, including patents, trademarks, and copyrights.

The USMCA also includes new provisions on labor and the environment. The agreement includes rules that require Mexico to implement labor reforms to protect workers’ rights. The agreement also includes environmental provisions that aim to protect the environment and combat climate change.

The USMCA was ratified by the United States in January 2020, and by Mexico in June 2019. Canada ratified the agreement in March 2020, with the agreement taking effect on July 1, 2020.

Overall, the USMCA aims to strengthen trade ties between the United States, Mexico, and Canada. The agreement includes new provisions on digital trade, intellectual property rights, labor, and the environment, and updates NAFTA to better reflect the modern global economy.