USMCA is Signed by Leaders on Friday

US President Donald Trump and leaders from Canada and Mexico have signed the successor to the North American Free Trade Agreement (Nafta).

The revised deal has been renamed as the United States-Mexico-Canada Agreement, or USMCA.

usdcad Canadian dollar graph, November 30, 2018

Renegotiating Nafta was a key pledge of Mr Trump’s 2016 White House campaign. The US President claimed it “changes the trade landscape forever”.

USMCA will govern a trillion dollars worth of trade between the countries.

The deal comes after more than a year of negotiations between the parties, with agreement on new car and dairy industry regulations proving particularly challenging.

Throughout the start of his presidency, President Trump has repeatedly threatened to withdraw the US from Nafta, unless he could secure a better deal.

However after a deal was agreed in principle on 30 September Mexican President Pena Nieto hailed it as a “win-win-win.”

Politicians from each country will still need to ratify the USMCA before it can take effect.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza