USMCA
Definition
The United States-Mexico-Canada Agreement (USMCA) is a trade deal that replaced NAFTA in 2020. It updated many aspects of the previous agreement with changes for industries like automotive manufacturing and dairy farming.
Analogy
If NAFTA was an old-school flip phone, then USMCA is like upgrading to a smartphone - it's essentially the same concept but with new features added for modern times.
Related terms
Intellectual Property Rights (IPR): These are legal rights given to individuals or companies over creations of their minds such as inventions or designs. USMCA has stricter rules about IPR than NAFTA did.
Supply Chain Management (SCM): This involves overseeing materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer and finally consumer. Changes in SCM were part of USMCA updates.
Automotive Rules of Origin (ARO): These rules determine whether a product can be considered as originating from the countries in an agreement. USMCA made changes to ARO for cars and car parts.
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