the new United States-Mexico-Canada Agreement (USMCA) will support mutually beneficial

trade leading to freer markets, fairer trade, and robust economic growth in North America.The
United States, Mexico, and Canada have reached an agreement on a modernized, high-standard
Intellectual Property (IP) chapter that provides strong and effective protection and enforcement
of IP rights critical to driving innovation, creating economic growth, and supporting American
jobs.

steel and aluminium:-

These changes were designed to pull off a delicate balancing act between helping the U.S. steel
industry while also strengthening ties between the U.S., Mexico, and Canada. If the new
regulations work as intended, they could be a boon for U.S. steelmakers such as U.S. Steel,
Nucor, and Steel Dynamics. They could also make Cleveland Cliffs (NYSE:CLF) management
look like geniuses for scooping up AK Steel at bargain prices

70% of a vehicle's steel and aluminum must be purchased from North American producers, as
well. Adding further protections, a last-minute change to the bill included a provision that steel
must be "melted and poured" within these countries to qualify for the tariff exemption -- though
this important provision will be phased in over time. This is because many steel products had
gotten around the Section 232 tariffs of 2018 by shipping to Mexico, after Mexico was granted
an exemption from 232 tariffs earlier this year.Mexican steelmakers would then only slightly
alter the product before shipping into the U.S. This has led to a flood of foreign imports
impacting the market for certain steel grades, particularly electrical steels.

Thus, the new "melted and poured" provision was added late in the talks to close this loophole.
However, the provision won't go into effect for seven years. This time lag was conceded so that
the Mexican and Canadian steel industry would have time to adjust.

Thus, while it's good that the loophole was closed, U.S. steelmakers could still see some pressure
from imports for the foreseeable future. A similar provision for aluminum was scrapped, but the
countries will revisit the "melted and poured" issue on aluminum in 10 years.

AK Steel (NYSE:AKS) gets roughly two-thirds of its revenue from U.S. automakers, with a smaller but
significant segment in electrical steels, which have been hurt by imported Mexican steels originating
outside the country. Thus, AK Steel could benefit the most from the closing of the "melted and poured"
loophole. But remember, this will be phased in over seven years.

uncertainity:-While the protections in the bill were meant to boost these domestic steel players, there
are still some risks. Increased restrictions will likely boost production costs for U.S. automakers, causing
them to raise prices on automobiles. If prices rise too much, it could dent overall automobile demand,
which could negate the increased usage of North American-made steel.