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Evolution of the North American Model of Economic Integration: From NAFTA to USMCA
Sumar Y. S.

Sumar, Yaroslav S. (2025) “Evolution of the North American Model of Economic Integration: From NAFTA to USMCA.” Business Inform 12:57–66.
https://doi.org/10.32983/2222-4459-2025-12-57-66

Section: International Economic Relations

Article is written in English
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UDC 339.924(7)

Abstract:
The article examines the evolution of the North American model of economic integration from the North American Free Trade Agreement (NAFTA) to the United States – Mexico – Canada Agreement (USMCA). Over almost three decades NAFTA facilitated deep economic interdependence between the three countries but gradually revealed structural limitations, including outdated regulatory provisions, uneven distribution of benefits and insufficient enforceability of labour and environmental commitments. The renegotiation of the agreement was shaped by technological transformations, the rise of digital trade, geopolitical shifts and the demand for higher social and environmental standards. The aim of this article is to identify the key institutional differences between NAFTA and USMCA, assess the regulatory innovations introduced by the new agreement and evaluate their implications for the development of regional economic integration in North America. The study applies an institutional and comparative analysis of the texts of NAFTA and USMCA; content analysis of analytical reports by international organisations and research institutions; descriptive statistical analysis of trade and investment flows in the North American region; and a tabular comparative method to summarise changes in rules of origin, labour standards, digital trade regulation, environmental commitments and intellectual property protection. The research demonstrates that USMCA represents a modernised version of NAFTA, maintaining tariff-free trade while introducing new regulatory mechanisms. The agreement includes a separate chapter on digital trade, enforceable labour rights with a rapid response mechanism, stricter rules of origin and labour value content requirements in the automotive sector, an expanded chapter on intellectual property and a fully integrated environmental chapter. These innovations shift the model of integration from a liberalisation-oriented framework to a more regulated and socially oriented architecture. While macroeconomic effects on GDP are estimated to be modest, USMCA enhances institutional stability, strengthens labour and environmental protection and adjusts regional rules to the realities of the twenty-first century. The agreement also reflects strategic considerations, including supply-chain resilience and geopolitical alignment within the region.

Keywords: USMCA, NAFTA, North American integration, digital trade, labour standards, rules of origin, intellectual property, regional trade agreements.

Fig.: 2. Tabl.: 2. Bibl.: 18.

Sumar Yaroslav S. – Postgraduate Student, Education and Research Institute «Karazin Institute of International Relations and Travel Business» of V. N. Karazin Kharkiv National University (6 Svobody Square, Kharkiv, 61022, Ukraine)
Email: [email protected]

List of references in article

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