Critical Analysis of the United States-Mexico-Canada Agreement (USMCA)

This report provides a critical analysis of the United States-Mexico-Canada Agreement (USMCA), focusing on its implications for the economic growth of the involved nations: the United States, Mexico, and Canada. The analysis is based on the article "The USMCA explained: Winners and losers, what’s...Read More

LAST NAME OF THE STUDENT 1
Name of the Student:
Course Code and Id:
Name of the Professor:
Date:
United States-Mexico-Canada Agreement (USMCA) and its Implications
As stated by McGuire (2018), the economic growth of a nation greatly depends on the
kind of trade and commerce relation that it shares with its neighboring nations since it not only
facilitates economic growth but also helps in the reduction of their unemployment rate as well.
Laurens et al. (2019) are of the viewpoint that the trade and commerce relations among USA,
Canada and Mexico had not been ideal one and this had adversely affected the economic growth
of the nations of all these three nations. Thus, the United States-Mexico-Canada Agreement
(USMCA) had been proposed which seeks to remedy this issue and thereby to facilitate the
economic growth or development of these three nations by offering them free trade, adequate
labor facilities and others. The purpose of this paper is to undertake a critical analysis of the
article “The USMCA explained: Winners and losers, what’s in and what’s out” which highlights
the implications of the concerned agreement for the three nations under discussion here.
Proudfoot and Markusoff (2020) in the article under discussion here highlight the fact
that all the three nations, namely, USA, Canada and Mexico, are likely to derive ample amount
of benefits through the proposed USMCA. More importantly, this particular agreement is likely
to especially benefit the automobile industry, diary industry and the steel industry of the nations
of Canada and Mexico and also likely to safeguard them against the exploitation or for that

LAST NAME OF THE STUDENT 2
matter the dominance of the industries related to these industries of the nation of USA
(Proudfoot and Markusoff 2020). Furthermore, through this particular agreement the nations
involved in the concerned agreement have the option to file complaints or for that matter
disputes if they feel that the conduct of the other nations is not as per the terms of this agreement.
In this relation, it needs to be said that the terms of this particular agreement are in synchronicity
with the some of the basic concepts of governance and also international trade and commerce.
For instance, this particular agreement can be seen as an initiative of the three nations involved
in the same to offer adequate economic or employment to its people and also facilitate their
economic growth as well which in turn will positively affect the quality of life that they lead
(Macdonald 2019). In addition to these, the precepts of this particular agreement would also
facilitate the effective usage of the process of globalization and thereby would lead to the growth
of trade and commerce all three nations involved in the process which once again would benefit
their national economy.
To conclude, the terms of the United States-Mexico-Canada Agreement by facilitating
free trade, offering adequate employment opportunities and others are likely to positively affect
the national economy of all three nations involved in the agreement. More importantly, this
would also broaden the growth or development opportunities which are presently available to the
automobile, steel, dairy and other industries of the nations of Mexico and Canada and thereby
lead to the improvement of the quality of life led by the people of these nations.

LAST NAME OF THE STUDENT 3
References
Laurens, N., Dove, Z., Morin, J.F. and Jinnah, S., 2019. NAFTA 2.0: The Greenest Trade
Agreement Ever?. World Trade Review, 18(4), pp.659-677.
Macdonald, L., 2019. Upsetting the Apple Cart? Implications of the NAFTA Re-Negotiations for
Canada–US Relations. In Canada–US Relations (pp. 193-213). Palgrave Macmillan, Cham.
McGuire, W., 2018. A State-Level View of NAFTA: Economic Implications and Policy
Options. Ohio St. LJ, 79, p.737.
Proudfoot, S. and Markusoff, J. 2020. The USMCA explained: Winners and losers, what's in and
what's out - Macleans.ca. [online] Macleans.ca. Available at:
https://www.macleans.ca/economy/the-usmca-explained-winners-and-losers-whats-in-and-
whats-out/ [Accessed 21 Jan. 2020].