President Trump's New USMCA Deal Explained

Although most of the U.S.-Mexico-Canada Agreement keeps most of the old deal of $1.4 trillion of annual trade among the three countries, the new deal is expected to create 176,000 jobs after 6 years and increase the U.S. GDP by 0.35% (CNN Report).

There will be no tariffs on farmers (primarily Republican voters) across the three countries and Canada will be able to ship more products on the southern border. Under the new deal, Mexico is now required to authorize workers to form independent unions formally. This will free them from institutional control, a reason why wages were low in Mexico, and why some Mexicans would cross the border illegally.

American businesses will have to manufacture primarily in the United States in order to receive tax benefits, therefore keeping businesses within the country.

The agreement was signed by leaders from all three countries in 2018 and passed by Congress earlier this year.