On Friday, April 24, 2020, the United States Trade Representative (USTR) Robert Lighthizer notified Congress that the United States-Mexico-Canada Agreement (USMCA) will enter into force on July 1, 2020.
All three participating countries have taken the final steps necessary to comply with the commitments under the USMCA. According to the agreement, the USMCA is to enter into force on the first day of the third month subsequent to completion of these final steps.
The USMCA will be replacing the historical North American Free Trade Agreement (NAFTA). According to a USTR announcement, the USMCA will be “supporting more balanced, reciprocal trade, leading to freer markets, fairer trade, and robust economic growth in North America.” The USMCA “contains significant improvements and modernized approaches to rules of origin, agricultural market access, intellectual property, digital trade, financial services, labor, and numerous other sectors.”
Businesses engaged in North American trade should review the USMCA requirements, including the rules of origin, to determine which of their goods qualify. Businesses not yet engaged in North American trade should review the agreement and look for opportunities that trade between the United States, Canada, and Mexico can offer.
For more information, please contact your local Noatum Logistics USA (Formerly MIQ Logistics) representative.