The negotiations focused “primarily on car exports, tariffs on steel and aluminum, as well as the milk, egg and poultry markets.” A provision “prevents any party from enacting laws that restrict the cross-border flow of data.” [11] Compared to NAFTA, the USMCA increases environmental and labour standards and encourages domestic production of cars and trucks. [12] The agreement also provides up-to-date intellectual property protection, gives the U.S. more access to the Canadian milk market, imposes a quota for Canadian and Mexican auto production, and increases the customs limit for Canadians who purchase U.S. products online from $20 to $150. [13] The full list of differences between USMCA and ALEFTA is listed on the Website of the United States Trade Representative (USTR). [14] And that is what needs to be done anyway to avoid long-distance transport and uniform production that is currently threatening the climate. The rules of trade are therefore written. It is no longer a question of tariffs. In general, tariffs are reduced unless a penalty is imposed.

On 1 July, the three countries will benefit from the agreement if they move towards a more open market. While many things remain similar or equal to NAFTA, importers must be guided by uncertainty about what the USMCA will change for them. As a customs consultant and broker, we work closely with importers to ensure they are ready to remain compliant – and take advantage of duty free import! The agreement is the result of a renegotiation between the member states of the North American Free Trade Agreement, which gave informal agreement on 30 September 2018 and officially on 1 October under the new agreement. [10] The USMCA was proposed by U.S. President Donald Trump and signed on November 30, 2018 by Trump, Mexican President Enrique Pea Nieto and Canadian Prime Minister Justin Trudeau as a secondary event of the 2018 G20 summit in Buenos Aires. A revised version was signed on December 10, 2019 and ratified by the three countries, with final ratification (Canada) taking place on March 13, 2020 just before the Canadian Parliament adjourned due to the COVID-19 pandemic. Get answers to the most frequently asked questions about the agreement. Download There is a real difference between what you are doing to repair a really bad deal that causes persistent damage. On March 1, 2019, many organizations representing the agricultural sector in the United States announced their support for the USMCA and asked Congress to ratify the agreement. They also called on the Trump administration to continue to support NAFTA until the new trade agreement is ratified.

[70] On March 4, House Ways and Means President Richard Neal predicted a “very hard” path through Congress for the agreement. [71] Starting March 7, senior White House officials met with members of the Ways and Means House of Representatives, as well as moderate cackles from both parties, such as the Solver Caucus, the Tuesday Group and the Blue Dog Coalition, to seek ratification support. The Trump administration also withdrew from the threat to withdraw from NAFTA as negotiations with Congress continued. [72] If we take a step back, it is interesting to note that we are in a week where President Trump has just signed this first phase of a trade agreement with China. You have this new North American trade agreement, the USMCA, in The Future. The Canada-Mexico-U.S. trade agreement will officially enter into force on July 1. The agreement is designated differently by each signatory – in the United States, it is called the U.S.-Mexico-Canada Agreement (USMCA); [1] [23] in Canada, it is officially known as the Canada-U.S.-Mexico Agreement (CUSMA) in English[24] and the Canada-U.S.-Mexico Agreement (ACEUM) in French; [25] and in Mexico, tratado is called tratado between México, Estados Unidos y Canadé (T-MEC).

[26] [27] The agreement is sometimes referred to as “New NAFTA”[28][29] with respect to the previous trilateral agreement for the successor, the North American Free Trade Agreement (NAFTA).