In July 2020, the United States-Mexico-Canada Agreement (USMCA) came into full effect, replacing the previous North American Free Trade Agreement (NAFTA). The USMCA is a trade agreement between the three North American countries that aims to increase trade between them while also implementing more modern provisions.

One of the most significant changes in the USMCA is its focus on manufacturing jobs and the auto industry. The agreement requires that 75% of automobile parts be made in North America, up from NAFTA`s 62.5%. Additionally, a significant portion of those parts must be made by workers earning at least $16 an hour, a measure aimed at preventing companies from relocating to Mexico for cheaper labor.

The USMCA also includes provisions addressing digital trade, agriculture, and intellectual property. For example, it prohibits data localization requirements, which are restrictions that require companies to store data within a particular country`s borders. This provision is aimed at making it easier for companies to store and transfer data across North American borders.

Another notable change is the protection of US dairy farmers. The USMCA gives them greater access to the Canadian market, allowing them to export more milk, cheese, and other dairy products.

Overall, the USMCA is expected to bring about significant economic benefits for the three countries involved. It is projected to add $68.2 billion to the US economy and create 176,000 jobs over six years.

However, some concerns have been raised by environmental groups and labor unions. They argue that the USMCA does not go far enough in addressing climate change and workers` rights. Nevertheless, the USMCA represents a significant step forward in North American trade relations, and it will be interesting to see how it continues to shape the economies of the United States, Mexico, and Canada in the years to come.