U.S.-Mexico-Canada Agreement (USMCA)

The U.S.-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA). USMCA makes a good trade relationship even better, ensuring preferential market access for U.S. farm and food products and solidifying commitments to fair and science-based trade rules.

Key Provisions

Biotechnology

For the first time, the agreement specifically addresses agricultural biotechnology – including new technologies such as gene editing – to support innovation and reduce trade-distorting policies.

Geographical Indications

The agreement institutes a more rigorous process for establishing geographical indicators (GIs) and lays out additional factors to be considered in determining whether a term is a “common name.”

Sanitary/Phytosanitary Measures

The agreement strengthens disciplines for science-based measures that protect human, animal, and plant health while improving the flow of trade.

Dairy

America’s dairy farmers gained new market opportunities in Canada for a wide variety of products. Canada also agreed to eliminate the unfair milk pricing program that allowed its farmers to undersell U.S. producers.

Poultry and Eggs

U.S. poultry producers gained new access to Canada for chicken and eggs and expanded access for turkey.

Wheat

Canada agreed to terminate its discriminatory wheat grading system, enabling U.S. growers along the border to be more competitive.

Wine

The three countries agreed to avoid technical barriers to trade through non-discrimination and transparency regarding sale, distribution, labeling, and certification.

Fruit

The agreement updates origin rules for processed fruits to assure that preferences benefit U.S. producers.

Additional information about the USMCA is available from the Office of the U.S. Trade Representative.