North American trade supports millions of U.S. jobs and significantly drives our nation’s export growth.
American farmers, ranchers, manufacturers, and service providers rely on trade with Canada and Mexico as significant sources of revenue for their businesses. The export revenue with our North American neighbors has quadrupled in the past 25 years, leading to more jobs and increased economic prosperity. That is why it is so important for lawmakers to preserve and strengthen North American trade by passing the U.S.-Mexico-Canada Agreement (USMCA) and continue enabling export growth for American businesses.
Here are six reasons why USMCA is good for American businesses, families, and consumers:
Supports Millions of JobsTrade with Canada and Mexico supports 12 million American jobs and 49 U.S. states count Mexico or Canada as one of their top three merchandise export markets.
Drives Export GrowthU.S. exports to Canada and Mexico have increased more than U.S. exports to any other country since the 2007 recession. In fact, Canada and Mexico account for 40% of the growth in overall U.S. goods exports and trade with the two countries reached nearly $1.4 trillion in 2018.
Vital for U.S. ManufacturersU.S.-manufactured goods exports to Canada and Mexico supports more than 2 million American jobs. Most U.S. manufacturing sectors and most states count Canada or Mexico as their first or second largest foreign purchasers.
Essential for Farmers & RanchersU.S. agricultural exports to Canada and Mexico quadrupled from $8.9 billion in 1993 to $39 billion in 2017, according to the American Farm Bureau Federation. Nearly one third of U.S. agricultural exports went to Canada and Mexico.
Boosts American Small BusinessesCanada and Mexico are the top two export destinations for U.S. small and medium-sized enterprises, more than 120,000 of which sell their goods and services to our North American neighbors.
Powers the Service EconomyU.S. services exports to Canada and Mexico tripled from $27 billion in 1993 to $96 billion in 2018. America’s highly competitive business services sector – including firms in fields like audiovisual, software, architecture, accounting, engineering and project management, banking, insurance, and many more – continues to enjoy exceptional export growth.
USMCA brings the more than 25-year-old North American Free Trade Agreement (NAFTA) into the 21st century with updated provisions for digital trade, intellectual property, financial services, and agriculture trade.
Here are the key ways that USMCA modernizes North American trade:
Grows Digital Trade
- USMCA creates best-in-class rules to foster U.S. growth in the digital economy for firms of all sectors and sizes. It guarantees the freedom to move data across borders and prohibits the forced localization of data, thereby ensuring continued growth.
Protects Intellectual Property
- It secures stronger protections for the full range of patents, copyrights and related rights, trademarks, designs, and trade secrets. It also includes strong enforcement tools to guard against counterfeiting and piracy - promoting continued U.S. innovation that supports and creates well-paying jobs.
Strengthens Agriculture Trade
- In addition to securing outstanding market access, USMCA establishes modern, science-based sanitary and phytosanitary standards that are the strongest achieved in any trade agreement. It provides transparency and information sharing on measures impacting trade in the products of biotechnology.
American jobs supported by trade with Canada and Mexico
increase in agricultural exports since NAFTA enactment
small-and medium-size businesses sell goods and services to Canada and Mexico
cumulative trade surplus in manufactured goods with Canada and Mexico, 2008-2014