The Agreement between the United States of America, the United Mexican States, and Canada (USMCA) is a free trade agreement among the United States, Mexico, and Canada, in effect from July 1, 2020. It replaced the North American Free Trade Agreement (NAFTA) implemented in 1994. Further, it is sometimes characterized as "NAFTA 2.0", or "New NAFTA", since it largely maintains or updates the provisions of its predecessor. The region including Canada, Mexico, and the United States is one of the world's largest free trade zones, with a population of more than 510 million people and an economy of $30.997 trillion in nominal GDP – nearly 30 percent of the global economy, and the largest of any trade bloc in the world.
All sides came to a formal agreement on 1 October 2018, and U.S. president Donald Trump proposed USMCA during the G20 Summit the following month, where he signed it, Mexican president Enrique Peña Nieto, and Canadian prime minister Justin Trudeau. A revised version reflecting additional consultations was signed on December 10, 2019. It was ratified by all three countries, with Canada being the last to ratify on March 13, 2020. Following notification by all three governments that the provisions were ready for domestic implementation, the agreement came into effect on 1 July 2020.
