# 2 NAFTA2: The USMCA

Summary

The case explores the future of North American Free Trade Agreement (NAFTA) in the Trump era. President Donald Trump repeatedly criticized the agreement, saying that it is a poor deal for the United States and should either be renegotiated or scrapped altogether. He made good on this promise on September 30, 2018, when he reached a new agreement with Mexico and Canada, called the United States-Mexico-Canada Agreement, or USMCA. One industry that will certainly be affected by this new agreement is the auto industry. Criticism from Trump has already prompted Ford to rethink its plans to expand its operations in Mexico. This new deal will make it more expensive for automakers to produce their cars in Mexico.

Discussion Questions

2-a. Discuss NAFTA in the Trump era. What changes to trade based on the new USMCA agreement would he like to see?

2-b. As an American consumer looking for a new car, what does NAFTA mean to you? Does your response change if you are a consumer from Mexico or Canada? What about under the new USMCA?