Mexico United States Trade Agreement

The Mexico-United States Trade Agreement: A Comprehensive Overview

The relationship between Mexico and the United States has always been one of economic significance. Over the years, trade between the two countries has grown tremendously. Today, the two countries trade goods and services worth billions of dollars annually. It is in this light that the Mexico-United States trade agreement was signed.

What is the Mexico-United States Trade Agreement?

The Mexico-United States trade agreement is a comprehensive trade deal between the two countries, which aims at deepening their economic relationship. The agreement was signed on August 27, 2018, and came into effect on July 1, 2020.

The agreement replaces the North American Free Trade Agreement (NAFTA), which had been in place since 1994. NAFTA was designed to promote trade and investment between the United States, Canada, and Mexico, but it faced criticism over time, especially from the United States, regarding the negative impact on U.S. jobs.

The new trade agreement seeks to address some of the shortcomings of NAFTA and to modernize the trade relationship between Mexico and the United States. The deal has been lauded for improving market access for American and Mexican farmers, expanding intellectual property protections, and modernizing e-commerce rules.

Key Provisions of the Mexico-United States Trade Agreement

The agreement includes several key provisions that aim to improve the economic relationship between the two countries. Some of these provisions include:

1. Auto Industry: The new agreement imposes higher standards for the auto industry. Specifically, it requires that a certain percentage of the components in a car must be produced by workers earning at least $16 per hour. Additionally, it increases the North American content requirement for vehicles to qualify for zero tariffs.

2. Labor: The Mexico-United States Trade Agreement includes provisions to protect workers` rights in Mexico. These provisions include changes to Mexican labor laws to make it easier for workers to organize unions and negotiate better wages and working conditions.

3. Agriculture: The agreement provides market access for American and Mexican farmers. Specifically, it eliminates tariffs on some U.S. agricultural products, such as poultry, eggs, and dairy. It also includes provisions that aim to prevent the spread of plant and animal diseases.

4. Intellectual Property: The agreement includes provisions to enhance the protection of intellectual property. Specifically, it extends patent protection for biologic drugs, which are used to treat diseases such as cancer and autoimmune disorders. It also includes provisions to prevent trademark counterfeiting and copyright piracy.

5. E-commerce: The agreement modernizes the rules governing e-commerce. Specifically, it prohibits customs duties on digital products and services that are transmitted electronically. Additionally, it includes provisions that aim to ensure that data can flow freely across borders.


The Mexico-United States Trade Agreement is a comprehensive deal that aims to improve the economic relationship between the two countries. While the new agreement builds on NAFTA, it includes several provisions that aim to address the shortcomings of the previous agreement. These provisions include improvements to labor standards, protection of intellectual property, and modernization of e-commerce rules. Overall, the agreement is considered a positive development for both Mexico and the United States.