CURRENT AFFAIRS

Detailed explanation-1: -Overview. The U.S. – Mexico – Canada Agreement (USMCA) is a trade agreement between the named parties. The USMCA replaced the North American Free Trade Agreement (NAFTA).

Detailed explanation-2: -Preliminary agreement on the pact was reached in August 1992, and it was signed by the three leaders on December 17. NAFTA was ratified by the three countries’ national legislatures in 1993 and went into effect on January 1, 1994.

Detailed explanation-3: -The North American Free Trade Agreement (NAFTA /ˈnæftə/; Spanish: Tratado de Libre Comercio de América del Norte, TLCAN; French: Accord de libre-échange nord-américain, ALÉNA) was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America.

Detailed explanation-4: -Canada, the United States and Mexico signed a new North American trade agreement to replace NAFTA on November 30, 2018. The CUSMA (or USMCA in the U.S.) came into force in Canada in July 2020.