The U.S.-Mexico agreement is based on the North American Free Trade Agreement (NAFTA), which originally came into force on January 1, 1994. The agreement under consideration was the result of more than a year of negotiations including possible U.S. tariffs on Canada, in addition to the possibility of separate bilateral agreements.  NAFTA`s dispute resolution mechanisms for allegations of unfair trade practices have not changed with the new agreement (USMCA). Under this system, each signatory country allows Member States to review anti-dumping complaints and countervailing duty claims against other members before the appointment of expert arbitration tribunals. However, the current investor dispute settlement system, which allows investors to assert rights against member governments, will end between the United States and Canada, while certain sectors (such as energy, infrastructure and telecommunications) will continue to be able to bring such cases against Mexico. The agreement requires disclosure of market interventions. The IMF may be summoned as an arbitrator if the parties argue.  For the first time, a trade agreement will require that negotiations “focus primarily on car exports, tariffs on steel and aluminum, as well as the milk, egg and poultry markets.” A provision “prevents any party from enacting laws that restrict the cross-border flow of data.”  Compared to NAFTA, the USMCA increases environmental and labour standards and encourages domestic production of cars and trucks.
 The agreement also provides up-to-date intellectual property protection, gives the U.S. more access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases the customs limit for Canadians who purchase U.S. products online from $20 to $150.  The full list of differences between USMCA and ALEFTA is listed on the Website of the United States Trade Representative (USTR).  The agreement is described differently by each signatory – in the United States, it is called the U.S.-Mexico-Canada Agreement (USMCA);   in Canada, it is officially known as the Canada-U.S.-Mexico Agreement (CUSMA) in English and the Canada-U.S.-Mexico Agreement (ACEUM) in French;  and in Mexico, tratado is called tratado between México, Estados Unidos y Canadé (T-MEC).   The agreement is sometimes referred to as “New NAFTA” with respect to the previous trilateral agreement for the successor, the North American Free Trade Agreement (NAFTA). The full text of the agreement between the United States, Mexico and Canada is available here. The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, came into force on January 1, 1994. NAFTA has created economic growth and a rising standard of living for the people of the three member countries. By strengthening trade and investment rules and procedures across the continent, Nafta has proven to be a solid foundation for building Canada`s prosperity.
NAFTA replaced Canada-U.S.