U.S. President Donald Trump announces the United States-Mexico-Canada Agreement (USMCA) during a news conference in the Rose Garden of the White House in Washington, U.S., October 1, 2018.
Image Source: 
REUTERS/Leah Millis

Jeffrey J. Schott (PIIE)

The new US-Mexico-Canada Agreement (USMCA) partially updates the 25-year-old North American Free Trade Agreement (NAFTA) by imposing new obligations on environmental policies and labor practices, curbing state-owned enterprises, and fostering digital trade. But it also imposes new restrictions that will impede regional trade and investment, stifling the potential for economic growth, particularly in the auto sector.

Photo Credit: 
REUTERS/Leah Millis