Today, government leaders in the United States, Canada and Mexico signed the U.S. Mexico Canada Agreement (USMCA) that is set to modernize the current North American Free Trade Agreement, known as NAFTA.
Leaders from all three countries deserve credit for working hard to preserve the key trading relationship that currently exists across our continent. Citi strongly advocated for the original NAFTA, and has supported the recent efforts to modernize it, based on our long history of working in and facilitating trade and investment among the U.S., Canada and Mexico.
In particular, we are encouraged by the modernized financial services chapter and commend the U.S. negotiators for securing strong language that will prohibit data localization in the region.
While today's signing is a significant step, it's important to note that signing the agreement is not the last step in this process, and we urge the respective bodies in each government to take the necessary steps to ratify the agreement.
No trade deal is ever perfect for all parties involved, but Citi and our clients have witnessed many benefits from strong regional integration and we believe this modernized agreement will enhance those opportunities.