NAFTA Before and After. Click to keep reading…

NAFTA Before and After. Click to keep reading…

The revised North American Free Trade Act (North American Trade Pact) was passed by Congress in December, 2019. The revised United States-Mexico-Canada agreement was the result of months of negotiation between President Trump and Democratic lawmakers. President Trump vowed during his campaign to revamp the 26 year old agreement. 

The two pacts are not dramatically different, and the key changes include:

  • To be duty free, automakers must have at least 75% of their components made in the U.S., Mexico or Canada. Also, 40-45% of the parts must be made by workers earning at least $16/hour by 2023.
  • U.S. dairy farmers will have improved access to the Canadian market
  • Digital trade rules are included like safe harbors for internet providers and online platforms, and limits on data localization
  • Improved labor and environmental protections
  • Biologic drugs will no longer be protected against generic competition. A loss for pharmaceutical companies

The Congressional Budget Office estimated that the changes will cost automakers and consumers an additional $3 billion over the next ten years because fewer imports will qualify for duty-free treatment under the new pact. 

Learn more about the new pact online at

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