USMCA Has Taken Effect, Now What?

(1-minute read)

The United States, Mexico, and Canada have reached an agreement to modernize the 25-year-old NAFTA into a 21st century, high-standard agreement. The new United States-Mexico Canada Agreement (USMCA) will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America. 

As North America's Fifth-largest manufacturing hub and with over $108 billion in trade Hlowing through this area's ports of entry in the past year, the Borderplex region is the gateway of trade for the Americas. Here is how supply chains from Asia will benefit in the Borderplex: 


Intellectual Property (IP)

IP will now be protected and rights will be enforced. For decades, manufactures had to battle with a trade-off for low manufacturing costs while sacrificing constant fears of stolen (IP). 

Digital Trade

Limits to where data can be stored and processed are minimized. Allows for faster and safe cross border transactions while protecting against cybersecurity threats. 

De Minimis

Small and medium-sized businesses (SME's) may realize a lower cost on customs duties and taxes, thus leveling the playing field while removing barriers of entry to global markets. 

Financial Services

Easing restraints on access to capital and service providers encourage a seamless flow across borders. 


Addresses unfair currency practices requiring high standard commitments to refrain from competitive devaluations while increasing transparency.


New trade rules of origin to drive higher wages by requiring 40-45% of auto content be made by workers earning at least $16 per hr. USD. 


Includes Hirst-ever articles to improve air quality, prevent & reduce marine litter, and support sustainable forest management. 


El Paso, Texas, Cd. Juarez, and Southern New Mexico are best geographically centered in North America to help companies realize gains in manufacturing with near-shoring. 


About The Borderplex Alliance

The Borderplex Alliance is an economic development and policy advocacy organization. The Alliance is independent, non-partisan, and private sector-led. Our mission to bring jobs, hope, and opportunity to the Borderplex region. 

Interested in learning more about the Borderplex region? Connect with Tony Ramirez at