The United States, Canada and Mexico have just concluded a new NAFTA agreement. Here is what is in it.

On Sunday night, President Trump expressed his wish to see a substantially revised North American trade agreement. After more than a year of intense negotiations, the United States, Canada and Mexico have reached an agreement to update the North American Free Trade Agreement, the Pact of 1994 which governs exchanges worth over $ 1.2 trillion between the three countries.

The new agreement will not take effect immediately. Most of the key provisions will not start until 2020 because the leaders of the three countries must sign it, and Congress and the legislatures of Canada and Mexico must approve it, a process that should take months.

Here's an overview of what's in the "new NAFTA".

New name: Goodbye NAFTA. The new agreement will call the US-Mexico-Canada or "USMCA" agreement. Trump, who had long disdained NAFTA, had suggested calling it "USMC" in honor of the US Marine Corps, but in the end, USMCA won.

Big changes for cars. The goal of the new contract is to have more cars and truck parts manufactured in North America. Starting in 2020, to qualify for the zero rate, a car or truck must have 75% of its components manufactured in Canada, Mexico or the United States, which is a substantial increase over the requirement current level of 62.5%.

There is also a new rule that a significant percentage of the work done on the car must be done by workers earning at least $ 16 an hour, about three times what the typical Mexican car worker currently earns. Starting in 2020, cars and trucks should have at least 30% of the work on the vehicle done by a worker earning $ 16 an hour. This gradually increases to 40% for cars by 2023.

Many economists believe that these new rules will help some North American workers, but they also warn that some small cars may no longer be manufactured in North America, because they would be too expensive under the new requirements. There is also concern that automakers may not manufacture as many cars in North America as they export to China and elsewhere abroad, as the costs in the USMCA region would be higher than vehicle manufacturing in Asia.

Trump's victory: Canada opens its milk market to American farmers. Trump has often tweeted how unfair he feels Canada imposes such high tariffs on US dairy products. Canada has a complex system of milk and dairy products. To ensure that Canadian dairy farmers do not go bankrupt, the Canadian government limits the amount of dairy products that can be produced in the country and the amount of foreign dairy products that can enter to keep milk prices high. Trump did not like that and milk production was a major blocking point in the negotiations.

In the end, Canada maintains most of its complex system in place, but it gives more market share to US dairy farmers. US negotiators say they have achieved a major victory by forcing Canada to eliminate the so-called "Class 7" pricing system. This means that US dairy farmers can probably send much more milk protein concentrate, skim milk powder and infant formula to Canada (and that these products are relatively easy to transport and store).

Canada's victory: Chapter 19, which provides for a special dispute settlement process, remains intact. Canadian Prime Minister Justin Trudeau has repeatedly said that he wants to maintain the so-called "Chapter 19" in place and that is exactly what happened. The United States did everything to eliminate this chapter, but in the end it stayed.

Chapter 19 allows Canada, the United States and Mexico to challenge each other's anti-dumping and countervailing duties before a panel of representatives from each country. This is usually a much easier process than trying to challenge a commercial practice in a US court. Over the years, Canada has successfully used Chapter 19 to challenge US restrictions on softwood lumber.

Mexico and Canada are confident that Trump will not pay them with car rates. Trump repeatedly threatened to raise prices on cars and parts of overseas vehicles imported into the United States. Along with the new trade deal, his administration has signed "escort letters" allowing both countries to dodge Trump's auto tariffs most of the time.

The accompanying letters indicate that Canada and Mexico can continue to send about the same number of vehicles and parts across the border, as the automobile rates are applied at a later date. Only parties above this quota could be subject to customs duties.

Trump's steel tariffs remain in place (for now). Canada wanted Trump to cut its 25% tariffs on Canadian steel. This has not happened yet. The two countries are still discussing the lifting of these tariffs, but a senior White House official said Sunday that the process was taking place on a "totally separate path". Trudeau called the steel tariffs "insulting and unacceptable", as both countries are such close allies.

Improved labor and environmental rights. The new USMCA brings a number of important improvements to environmental and labor regulations, particularly with respect to Mexico. For example, the USMCA states that Mexican trucks crossing the US border must comply with stricter safety rules and that Mexican workers must be better able to organize and form unions. Some of these provisions may be difficult to enforce, but the Trump administration says it is determined to guarantee them – a reason why American unions and some Democrats applaud the new rules.

Enhanced protection of intellectual property. The new chapter on intellectual property has 63 pages and contains stricter protections for patents and trademarks, including biotechnology, financial services and even domain names. Many business leaders and legal experts felt that these updates were necessary since the original agreement had been negotiated 25 years ago.

Chapter 11, which offers investors a particular way to fight against government decisions, is (mainly) gone. Chapter 11 is deleted entirely for Canada and especially for Mexico, with the exception of some key industries such as energy and telecommunications. Chapter 11 gave companies and investors a special process to resolve disputes with one of the NAFTA governments. The idea was that if investors invested a lot of money in a project and the government changed the rules, there was a clearly defined dispute resolution process – outside the court system – that would allow investors to resolve their problem.

Critics argue that Chapter 11 was primarily used to allow large corporations to obtain taxpayers' money, but companies say it was necessary to ensure that sudden changes do not occur when new governments came to power in Mexico, Canada or the United States. In the end, Chapter 11 virtually disappeared, with the exception of a few key industries like oil, which exerted strong pressure to challenge the Mexican government when it changed the rules and tried again to nationalize its energy sector.

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