North America is yet another region Magna Clothes is considering for its international expansion. Because he knows little about the United States–Mexico–Canada Agreement (USMCA), the CEO of Magna Clothes asks you to explain what you know about the agreement and how it might affect Magna’s entry into the Canadian clothing market. Which of the following statements are correct? Check all that apply.

NAFTA requires that its members eliminate all country-specific legislation allowing them to give preference to locally manufactured goods.

NAFTA eliminated many of the trade quotas and tariffs that existed before it was signed in 1992.

USMCA is the successor to the North American Free Trade Agreement (NAFTA).

Even with NAFTA, the United States and Mexico still have forms of “buy national” legislation, which gives preference to domestic producers. For example, the U.S. Department of Defense must purchase military uniforms made in the United States. Mexico requires that half of the car parts sold in Mexico be manufactured inside its borders.

NAFTA is expanding its traditional territorial boundaries to include countries in Central and South America.