The United States – Mexico – Canada Agreement was signed by President Donald Trump, President Enrique Peña Nieto, and Prime Minister Justin Trudeau on November 30, 2018, at the G20 summit in Buenos Aires, Argentina.
The USMCA comes as the successor to the North America Free Trade Agreement which has been re-negotiated over the past year and was originally signed in 1994. The new agreement will now need to be ratified by each country before it is expected to come into force in late 2019 or 2020.
In order to assess the potential impact of the USMCA coming into force, companies should now begin to consider the following:
• Review the new rules of origin for their products
• Validate product classifications and costing information
• Understand the impact of new “de minimis” thresholds on cross-border transactions, and
• Reassess the overall structure of their North American supply chains.
If you have questions about the USMCA and how it will impact your business, please reach out to firstname.lastname@example.org.