The USMCA (United States–Mexico–Canada Agreement) and its anti-corruption provisions are part of one of North America's most significant trade agreements.
Origins of the agreement
The agreement grew out of the North American Free Trade Agreement (NAFTA), which took effect in 1994. For the United States, it strengthened ties with two important trading partners; for Mexico, it opened new markets and accompanied the privatization of state-owned enterprises. Twenty-four years later, after a year of negotiations, the countries decided to make the renewed trade agreement an instrument for fighting corruption as well.
How did that commitment to fighting corruption come about? Donald Trump's proposal to withdraw from NAFTA, part of his presidential campaign, prompted negotiations. Because trade with the United States was so important to Canada and Mexico, the three countries began renegotiating the agreement in 2017.
In November 2018, after a year of talks, the countries signed the USMCA on the final day available for negotiations. Known in Spanish as the T-MEC (Tratado entre México, Estados Unidos y Canadá), the new agreement includes a significant change: Chapter 27, devoted to anti-corruption.
That chapter matters because protecting trade is no longer only about tariffs. It also calls for incorporating best practices in corporate governance grounded in business ethics, such as implementing a compliance program in companies that want to do business with Canada or the United States.
USMCA and the anti-corruption framework
A key element is preventing corruption and enabling people to report misconduct within companies and institutions. An ethics reporting channel, for example, can make that commitment tangible. Another essential element is ongoing ethics training and appointing a compliance officer within the company.
This trade framework among the North American countries reflects a broader form of globalization: not only products cross borders, but practices such as fighting corruption and establishing ethics channels do too. Learn what EthicsGlobal specialists are doing to support this new era.