USMCA countries must comply with IMF standards to avoid exchange rate manipulation. The agreement requires disclosure of market interventions. The IMF may be summoned as an arbitrator if the parties argue.  But the most important aspect for Canada – opening up its economy to the United States, by far Canada`s largest trading partner – was before NAFTA, when Canada and the United States came into force in 1989. Free Trade Agreement (CUSFTA). Total Canada-U.S. Trade rose rapidly in the wake of trade liberalization in Canada. After NAFTA, Canadian exports to the United States increased from [PDF] $110 billion to $346 billion; Imports from the United States increased in the same way. Canada ratified the agreement in March and the USMCA came into force on July 1, 2020. Although NAFTA is officially dead, governments and businesses are still adapting to the new rules, especially the new labour rules. Coronavirus can also complicate implementation as manufacturers adapt to new guidelines in the midst of a global economic crisis. Growing objections within Member States to U.S. trade policy and various aspects of the USMCA have had an impact on the signing and ratification process.
Mexico said it would not sign the USMCA if tariffs on steel and aluminum were maintained.  Based on the results of the November 6, 2018 U.S. election, it has been speculated that the greater power of Democrats in the House of Representatives could jeopardize the passage of the USMCA agreement.   Bill Pascrell, a senior Democrat, argued for changes to the USMCA to pass Congress.  Republicans have opposed the USMCA provisions that impose labour rights on LGBTQ and pregnant workers.  Forty Republicans in Congress have asked Mr. Trump not to sign an agreement that includes “the unprecedented integration of sexual orientation and the language of gender identity.” As a result, Trump ultimately signed a revised version that required each nation only to “policies it deems appropriate to protect workers from discrimination in the workplace” and said the United States would not be required to introduce additional non-discrimination laws.  The Canadian government expressed concern about the changes that have occurred under the USMCA agreement.  On May 11, 2018, House Of Representatives spokesman Paul Ryan set May 17 as the deadline for congressional action.
This deadline was not met and the agreement with Mexico was not reached until August 27, 2018.  At that time, Canada had not approved the agreement. Mexico`s outgoing President Enrique Pea Nieto, having left office on 1 December 2018 and requiring 60 days as a review period, the deadline for making the agreed text available was set at the end of September 2018, 30 September 2018. Negotiators worked around the clock and reached an agreement less than an hour before midnight on a draft text. The next day, October 1, 2018, the USMCA text was published as an agreed document. Mexican politicians saw NAFTA as an opportunity to accelerate and block these hard-hit reforms in the Mexican economy. In addition to trade liberalization, Mexican leaders have reduced public debt, introduced a balanced budget rule, stabilized inflation and built up the country`s foreign exchange reserves.