Economy

USMCA Trade Deal Officially in Effect

Written by Nicholas Vetrisek

The United States-Mexico-Canada Agreement (USMCA) officially went into effect on July 1. The revised trade agreement was signed in December of last year and is the replacement for the North America Free Trade Agreement (NAFTA).

The agreement was created in response to a loss of manufacturing jobs that resulted from NAFTA. The deal places restrictions on Mexico by requiring cars to have 70% of parts manufactured in the United States before tariffs are ended. In addition, it requires Mexico to raise the minimum wage of workers in the auto industry so the U.S. can better compete.

In addition, the U.S. farm industry will be able to use much of the wheat that was originally only used for cattle feed by Canada, but can now be marked for human consumption instead. There are also numerous other benefits to the plan, but another plus to the agreement is that San Diego played a big part in getting it passed.

San Diego Mayor Kevin Faulconer was one of the biggest supporters of the trade agreement, and as a result, $300 million was allocated to help stop the Tijuana sewage problem. “This is the first day of a 21st-century trade agreement for North America. The #USMCA officially replaces NAFTA today—and will help our region grow the jobs of tomorrow,” Faulconer tweeted. “At a time when economic security is critical, San Diego can be proud of how hard we fought for this pact.”

This agreement is a great accomplishment for the Trump administration and the nation as a whole. San Diegans also have reason to be glad given the part local leaders played in the passage of USMCA and the remedy of a decades-long problem.