Is this a “North American Union” like the European Union?
No. There is no common currency, no free movement of people and no supranational government. It is a customs union: one outer tariff, free circulation of goods, and coordinated trade rules applied by each country’s own institutions.
Who sets the common tariff?
The three governments, jointly, in stages. They start with the thousands of lines where rates already match and converge on the rest over a transition period. Each country keeps its seat and its voice.
Would prices go up?
The design points the other way. The common tariff converges toward the lowest rates and must be more open on the whole than today, as WTO rules require. Removing origin paperwork and border agency fees of 1–3% lowers costs further.
What about China?
Today, goods can enter through whichever partner charges less. With one common tariff every door charges the same, so the back door closes by design, and the region sets one coherent policy toward third countries instead of three.
Who gets the tariff revenue?
A two-part formula: a percentage to the country where goods arrive, and the remainder according to each country’s contribution to regional trade. The EU and the Southern African Customs Union already share revenue under their own formulas.
What about immigration?
Immigration stays national. Any labor mobility would come through a separate, managed circular-mobility agreement among the three neighbors, backed by security cooperation against illegal flows.
What would it ask of Mexico?
Reforms that strengthen the rule of law, competition and independent institutions, and a gradual end to the special regime for exporters so that their suppliers are local. The union is an anchor for that agenda, not a substitute for it.
Is it realistic?
It is ambitious, which is why it is staged. Since July 2026 the USMCA is reviewed every year; each review is a chance to set a destination instead of patching the agreement.