Special Report: The USMCA, Updates & Upshots
- Keywords:
- usmca
- canadian trade
On November 30, 2018, the leaders of the three North American countries signed the U.S.-Mexico-Canada Agreement (USMCA). So far, only Mexico has ratified the trade deal. To mark the upcoming one-year anniversary of the signing, we prepared this report, Making it Together: USMCA and U.S. Trade. It provides an update on deal-related developments and discusses the importance of trade with Canada for the U.S. economy.
Since last autumn, escalating U.S./China trade tensions, increasing risk surrounding U.S. and foreign trade policies, along with the consequences of these tensions and uncertainties for the U.S. and global economies, have pushed the USMCA to the backburner. But it’s against these developments that unencumbered access to North American markets becomes even more attractive for U.S. businesses. Total U.S. trade with Canada and Mexico, i.e., combined U.S. exports and U.S. imports of goods and services, was $1.4 trillion in the year ending June, with Canada alone at more than $720 billion, the most for any single country. This means about $2 billion of goods and services crosses the U.S.-Canada border every day. The USMCA should allow this to continue, and increase further.
View important Disclosure Statements at economics.bmo.com/en/disclosure
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Michael Gregory
Deputy Chief Economist & Managing Director
Michael is part of the team responsible for forecasting and analyzing the North American economy and financial markets. He has spent his career working in either ec…(..)
View Full Profile >On November 30, 2018, the leaders of the three North American countries signed the U.S.-Mexico-Canada Agreement (USMCA). So far, only Mexico has ratified the trade deal. To mark the upcoming one-year anniversary of the signing, we prepared this report, Making it Together: USMCA and U.S. Trade. It provides an update on deal-related developments and discusses the importance of trade with Canada for the U.S. economy.
Since last autumn, escalating U.S./China trade tensions, increasing risk surrounding U.S. and foreign trade policies, along with the consequences of these tensions and uncertainties for the U.S. and global economies, have pushed the USMCA to the backburner. But it’s against these developments that unencumbered access to North American markets becomes even more attractive for U.S. businesses. Total U.S. trade with Canada and Mexico, i.e., combined U.S. exports and U.S. imports of goods and services, was $1.4 trillion in the year ending June, with Canada alone at more than $720 billion, the most for any single country. This means about $2 billion of goods and services crosses the U.S.-Canada border every day. The USMCA should allow this to continue, and increase further.
View important Disclosure Statements at economics.bmo.com/en/disclosure.
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