Which agreement replaced NAFTA?

Which agreement replaced NAFTA?

• A. NAFTA.
• B. Mercosur.
• C. CAFTA-DR.
• D. USMCA.

Answer: (D)

USMCA—the United States–Mexico–Canada Agreement—replaced NAFTA to update North American trade rules for today’s economy. It keeps tariff-free trade among the three countries but modernizes many provisions: smarter rules of origin that affect where products must be made to qualify for zero tariffs, stronger protections for digital trade and intellectual property, and tighter labor and environmental standards with clearer enforcement. It also updates autos rules and adds wage-related criteria to encourage higher North American worker standards, along with refreshed rules for services, e-commerce, and state-owned enterprises. The other options are separate regional groupings or the former pact itself, not the replacement for NAFTA. This shift reflects a move to a more modern, enforceable framework that aligns with current trade needs.

USMCA—the United States–Mexico–Canada Agreement—replaced NAFTA to update North American trade rules for today’s economy. It keeps tariff-free trade among the three countries but modernizes many provisions: smarter rules of origin that affect where products must be made to qualify for zero tariffs, stronger protections for digital trade and intellectual property, and tighter labor and environmental standards with clearer enforcement. It also updates autos rules and adds wage-related criteria to encourage higher North American worker standards, along with refreshed rules for services, e-commerce, and state-owned enterprises. The other options are separate regional groupings or the former pact itself, not the replacement for NAFTA. This shift reflects a move to a more modern, enforceable framework that aligns with current trade needs.