(July 8, 2020)
The U.S.-Mexico-Canada trade deal came into effect on July 1, 2020. This agreement comes as a result of the 2017-2018 renegotiations of the North American Free Trade Agreement (NAFTA) and there are several key aspects of the USMCA that could impact the Lone Star State.
Important changes brought about by the USMCA include rules regarding the country of origin in automobile manufacturing, labor laws and provisions, and amendments to intellectual property rules and digital trade.
In 2018, U.S. exports to Mexico totaled a whopping $300 billion, while its imports from Mexico equated to $372 billion. In the same year, the U.S. exported $364 billion to Canada and imported $354 billion from the country.
On a slightly smaller scale, Texas has a direct trade relationship with Mexico. The two countries typically exchange electronics, oil, gas, coal, metals, plastics, and rubber across their borders. Last year, the Lone Star State exported $109 billion in goods to Mexico and $27 billion to Canada.
Additionally, with approximately 950,000 Texas jobs dependent on trade with Mexico and Canada, the USMCA has the potential to heavily impact nearly every industry. Read on to learn how the USMCA could affect the energy industry.