On September 30, 2018, the US, Mexico, and Canada reached an agreement on a revised North American trade deal. The United States-Mexico-Canada Agreement (USMCA) will replace the North American Free Trade Agreement (NAFTA). The agreement will not go into effect until 2020, after approval by the three countries’ governments.
The new deal includes changes for automotive, dairy, and pharmaceutical industries, as well as provisions for labor and environmental rights and intellectual property protection. Additionally, Canada and Mexico raised their de minimis level for duty-free shipments. The trade agreement will not bring changes to measures currently in place to protect aluminum, steel, or softwood lumber industries.
The USMCA is expected to be signed by December 1st, which would bring it to congressional consideration in early 2019. The website for the Office of the US Trade Representative provides an overview of the proposed agreement, as well as the agreement’s full text. Please reach out to Deringer’s Compliance Department for specific questions regarding USMCA.