The US and Canada have struck a last - minute deal to prevent the collapse of the NAFTA free - trade agreement . Renamed the United export - Mexico - Canada Agreement ( USMCA ) the deal will make it difficult for automakers to build cars inexpensively in Mexico , and Canada will provide dairy cattle farmers access to 3.5 % of its export market . It also sets a quota for passenger vehicles exported from both Mexico and Canada to the united States at 2.6 million passenger vehicles , but failed to resolve the tariff dispute on imports of Canadian steel and aluminium . The US and Mexico agreed to a bilateral pact in August .
The US and Canada have struck a last-minute deal to prevent the collapse of the NAFTA free-trade agreement. Renamed the United States-Mexico-Canada Agreement (USMCA) the deal will make it difficult for automakers to build cars inexpensively in Mexico, and Canada will provide US dairy farmers access to 3.5% of its dairy market. It also sets a quota for passenger vehicles exported from both Mexico and Canada to the United States at 2.6 million passenger vehicles, but failed to resolve the tariff dispute on imports of Canadian steel and aluminium. The US and Mexico agreed to a bilateral pact in August.