USA HISTORY

Detailed explanation-1: -The United States-Mexico-Canada Agreement (USMCA) is a trade deal that replaced the North American Free Trade Agreement (NAFTA). Trade liberalization is the removal or reduction of restrictions or barriers, such as tariffs, on the free exchange of goods between nations.

Detailed explanation-2: -The North American Free Trade Agreement (NAFTA) is a trade agreement that took effect on January 1, 1994, and it encourages trade between the United States, Canada, and Mexico. The agreement phased out most of the tariff and non-tariff trade barriers that existed among the trading countries.

Detailed explanation-3: -The Agreement between the United States of America, Mexico, and Canada (USMCA) was entered into force on July, 1, 2020, under the USMCA Implementation Act, H.R. 5430; Public Law 116-113. It replaces the North American Free Trade Agreement (NAFTA) which was in force from January 1, 1994 to June 30, 2020.

Detailed explanation-4: -In September 2018, the United States, Mexico, and Canada reached an agreement to replace NAFTA with the United States–Mexico–Canada Agreement (USMCA), and all three countries had ratified it by March 2020.

Detailed explanation-5: -All the three countries are signatories to the North America Free Trade Agreement (NAFTA) (signed in 1994) and form one of the largest and the most important trading blocks of the world, now rechristened as USMCA since July, 2020.