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Mexico Canada Free Trade Agreement

The Mexico-Canada Free Trade Agreement is a trade agreement between Mexico and Canada that was signed in 1993. This agreement eliminated tariffs between the two countries and created new opportunities for businesses to trade goods and services.

The agreement created a more competitive marketplace for businesses in both countries. It has been successful in increasing trade between Mexico and Canada, with trade between the two countries now accounting for over $40 billion annually.

The agreement has also created jobs in both Mexico and Canada. In Mexico, the agreement has encouraged the growth of industries such as automotive, aerospace, and information technology. In Canada, the agreement has increased exports of goods such as natural resources and manufactured goods.

The Mexico-Canada Free Trade Agreement has also had a positive impact on the North American economy. The agreement has created a more efficient supply chain, making it easier for businesses to move goods and services across borders. It has also encouraged investment and innovation, as businesses are able to take advantage of the new opportunities created by the agreement.

In recent years, the agreement has come under scrutiny. In 2018, the United States, Mexico, and Canada renegotiated the agreement, resulting in the United States-Mexico-Canada Agreement (USMCA).

The USMCA modernizes the original agreement and includes new provisions on intellectual property, digital trade, and labor and environmental standards. It also updates rules of origin for vehicles and auto parts, a key component of trade between the three countries.

Overall, the Mexico-Canada Free Trade Agreement and its successor, the USMCA, have been important drivers of economic growth and job creation in the North American region. These agreements have created a more competitive marketplace, encouraged innovation and investment, and facilitated the movement of goods and services across borders.