New North American trade pact --------------------------------- The U.S.-Mexico-Canada trade agreement (USMCA) has replaced the 26-year-old North American Free Trade Agreement (NAFTA), ending President Trump’s threat to break apart the three-nation free trade zone --------------------------------- Automotive: To qualify for zero tariffs, carmakers must increase vehicle’s content produced in North America to 75%, up from 62.5% under NAFTA. 70% of vehicle’s steel and aluminium must $292.63bn originate in North America. 40%-45% of vehicle’s value must come from high wage factories paying workers at least $16 an hour --------------------------------- Agriculture: U.S. dairy farmers to access about 3.5% of Canada’s $16 billion annual domestic dairy market. U.S. to get tariff-free access to Canada for 57,000 tonnes of chicken and 120 million eggs --------------------------------- Workers’ rights: Labour reforms to give Mexican workers right to join unions and cast secret ballots. Factories violating labour rights face end of tariff-free access to other partners --------------------------------- Copyright: Protection extended from 50 years to 70 years past author’s death – in line with current U.S. law --------------------------------- Pharmaceuticals: Deal aims to hold down drug prices by limiting some patent protections for pharmaceuticals --------------------------------- Digital: Pact prohibits duties on digital products including movies, e-books, music, games or videos, or other streaming material – a win for U.S. tech companies --------------------------------- Sunset clause: Requires partners to review after six years whether to remain in agreement. If any country decides not to continue with pact, USMCA will expire 16 years later --------------------------------- $357.97bn $256.57bn $319.43bn $27.84bn $5.52bn $1,259.96bn Trilateral trade (2019) -$128.20bn U.S. deficit with trade partners --------------------------------- Sources: Politico, Reuters, U.S Census Bureau, USTR Picture: Getty Images © GRAPHIC NEWS