Image via Forbes

Trucking industry relieved: Canada agreed to a highly-anticipated trade deal between the US and Mexico.

After months of negotiation, President Trump announced the “modernized” trade pact that rebalance trade affairs between the three countries. As of September 30, the U.S.-Mexico-Canada Agreement (USMCA) replaces the former North America Free Trade Agreement.

In a statement made on October 1, Trump stated that the “…USMCA brings our trade relationship with Canada and Mexico into the 21st century. In addition, NAFTA failed repeatedly to keep up with the fast-changing American economy. The old rules incentivized offshoring, leading far too many manufacturing jobs to leave the country.”

The most significant changes in the USMCA include automobile pricing and tariffs.

According to Forbes, the new agreement outlines a 12.5% increase in imports of American-made auto content. Therefore, more automobile manufacturing transitions from China to the United States. In addition, though USMCA does not discuss steel and aluminum tariffs, the prices for end products increase in 2019.

Also, both Canada and the United States agreed that the USMCA “…results in freer markets, fairer trade and robust economic growth in our region.”

Overall, though all three parties agree that there are still details to be worked out, all agree that this deal will be beneficial for the economy.