In January of this year, the United States-Mexico-Canada Agreement (USMCA) was passed with an overwhelming vote of 89 to 10. USMCA was drawn up as a replacement for the North American Free Trade Agreement (NAFTA) which took effect back in 1994. While there are some slight changes and modifications, USMCA is being touted by business leaders as something that will have a direct and positive impact on the trucking industry.
USMCA and Domestic Production
With the signing of USMCA, a new emphasis will be placed on production across many industries in the United States. The automotive industry, for example, will be able to produce more vehicles to meet the demands of customers north and south of the border. Agricultural products will be shipped to both Canada and Mexico. Even narrower industries, such as cheese and wine, will be able to reach distributors throughout North America without the previous restrictions that were in place.
What USMCA Means for the Trucking Industry
With trade restrictions now more open between Canada, Mexico, and the United States, the trucking industry should see more direct growth. Demands will have truckers taking shipments to and from the borders, and in some cases, directly into our neighboring countries. With the emphasis on domestic production and manufacturing, there will be more demand placed on trucking companies to take those goods to the north and south, and the revenue generated will allow the trucking industry to grow – hopefully to the point where it was prior to 2019.
USMCA Will Not Last Forever
There are many provisions in the pages of USMCA, but the initial run will be will last for about six years. After 2026, the countries involved will have a chance to review the agreement’s performance, at which point all parties could decide to continue. If everyone is satisfied, USMCA will last for another 16 years. This marks one of the largest bipartisan successes, as people on both sides of the aisle understand the necessary role the trucking industry plays in both domestic and international trade, and it should further strengthen the economy of the United States.