8 Benefits of CUSMA for Small Businesses
Last Updated: July 10, 2026
Small businesses play an important role in Canada’s economy, and many Canadian companies rely on access to customers, suppliers, and business opportunities across North America.
The Canada-United States-Mexico Agreement (CUSMA) provides the trade framework for Canada, the United States, and Mexico. The agreement replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020, and introduced updated rules for market access, customs procedures, rules of origin, digital trade, intellectual property, labor, environmental protection, and other areas.
CUSMA continues to provide preferential tariff treatment for qualifying goods. However, businesses must meet the agreement’s applicable rules and should not assume that a product qualifies simply because it qualified under NAFTA.
The agreement also reached its first six-year Joint Review on July 1, 2026. The review forms part of CUSMA’s built-in review process and does not mean that the agreement has expired. CUSMA remains in force under its current terms while Canada, the United States, and Mexico continue discussions about its future.
For Canadian small businesses trading across North America, understanding how CUSMA works can help with tariff planning, customs compliance, and market expansion.
What is CUSMA?
The Canada-United States-Mexico Agreement (CUSMA) is a free trade agreement between Canada, the United States, and Mexico. It entered into force on July 1, 2020, replacing NAFTA.
Canada refers to the agreement as CUSMA, while the United States calls it the United States-Mexico-Canada Agreement (USMCA). Mexico uses the name T-MEC.
CUSMA maintains preferential market access among the three countries while updating rules covering customs administration, rules of origin, digital trade, intellectual property, labor, environmental protection, government procurement, and small and medium-sized enterprises (SMEs).
The agreement also includes customs and trade facilitation provisions designed to make cross-border trade more predictable and reduce unnecessary administrative burdens.
8 Benefits of CUSMA for Small Businesses
CUSMA can provide several advantages to Canadian businesses that import, export, or operate across North America. The specific benefit depends on the product, tariff classification, origin, shipment value, and other applicable trade measures.
1. Preferential Tariff Treatment
CUSMA provides preferential tariff treatment for qualifying originating goods traded among Canada, the United States, and Mexico.
For products that meet the applicable CUSMA rules of origin, preferential treatment can reduce or eliminate customs duties compared with the applicable non-preferential tariff rate.
However, CUSMA does not make every product traded between the three countries automatically duty-free. Some goods remain subject to specific provisions, including tariff-rate quotas and other exceptions. Businesses must confirm the tariff treatment applicable to their specific products.
For Canadian exporters, qualifying for CUSMA treatment can reduce applicable customs duties when selling eligible products in the U.S. and Mexican markets.
2. Streamlined Customs Procedures
CUSMA modernized customs administration and trade facilitation rules among the three countries.
The agreement includes provisions related to electronic documentation, advance rulings, customs information, expedited shipments, and simplified procedures for certain low-value shipments.
These measures can help small businesses manage cross-border shipments with clearer customs procedures and less administrative work.
For businesses that regularly import or export, advance rulings can also provide greater certainty about how customs authorities will treat particular goods before shipments arrive.
3. Higher De Minimis Thresholds for Certain Shipments
CUSMA increased Canada’s de minimis thresholds for certain courier shipments from the United States and Mexico.
For qualifying courier shipments:
- Shipments valued at C$40 or less can enter free of duties and taxes.
- Shipments valued above C40butnotexceedingC150 can enter free of duties, although applicable taxes still apply.
- Shipments valued above C$150 remain subject to applicable duties and taxes.
These thresholds apply to qualifying courier shipments from the United States and Mexico. They do not create a general duty- and tax-free threshold for all imports entering Canada.
The CBSA rules for CUSMA low-value shipments explain how the thresholds apply to qualifying courier imports.
The higher thresholds can benefit small businesses that use courier services to receive goods from U.S. and Mexican suppliers or fulfill certain cross-border e-commerce orders.
4. Support for Cross-Border E-Commerce
CUSMA includes a dedicated digital trade chapter that addresses electronic commerce and digital trade.
The agreement supports electronic authentication and electronic signatures and establishes rules addressing cross-border data transfers and certain restrictions involving data storage and processing. The provisions also address consumer protection and online commercial activity.
The Government of Canada’s CUSMA Digital Trade Chapter explains how the agreement addresses digital trade and online commercial opportunities for Canadian businesses.
These rules can support Canadian small businesses that sell products or services online to customers in the United States and Mexico.
For companies that depend on websites, online marketplaces, digital services, or cross-border data flows, the digital trade provisions provide a common framework for doing business across North America.
5. Intellectual Property Protection
CUSMA includes provisions covering intellectual property rights, including trademarks, copyright, patents, trade secrets, and enforcement.
These provisions establish common standards among the three countries and can support businesses that develop or commercialize intellectual property across North American markets.
Businesses still need to follow the domestic intellectual property laws of each country where they want protection. CUSMA does not replace national trademark, copyright, or patent registration systems.
6. Labor and Environmental Standards
CUSMA includes dedicated chapters covering labor and environmental matters.
The labor provisions address areas such as freedom of association, collective bargaining, elimination of forced labor, elimination of child labor, and protection against employment discrimination.
The agreement also incorporates environmental commitments into the trade framework and establishes mechanisms for enforcing those commitments.
For small businesses, these provisions form part of the broader rules governing trade within North America and can affect companies through their supply chains, labor practices, and environmental obligations.
7. Support for Small and Medium-Sized Enterprises
CUSMA contains a dedicated chapter on small and medium-sized enterprises.
The agreement recognizes the role SMEs play in economic growth and employment and establishes a framework for cooperation among the three countries. The chapter addresses areas such as information sharing, trade promotion, access to information, and opportunities for SMEs to participate in North American trade.
The CUSMA Chapter on Small and Medium-Sized Enterprises specifically calls for cooperation to increase trade and investment opportunities for SMEs and improve their access to information and resources.
This focus can help smaller businesses find information related to customs requirements, trade opportunities, financing, intellectual property, and other areas relevant to international expansion.
8. A Common Framework for North American Trade
CUSMA provides a common set of rules covering many aspects of trade among Canada, the United States, and Mexico.
The agreement covers tariff treatment, rules of origin, customs procedures, digital trade, intellectual property, labor, environmental standards, SMEs, and other areas.
For businesses operating across multiple North American markets, having these provisions within one regional agreement can make it easier to understand the rules that apply to cross-border activity.
CUSMA also contains a formal Joint Review process. The first review took place on July 1, 2026, six years after the agreement entered into force. The CUSMA Joint Review gives Canada, the United States, and Mexico an opportunity to assess how the agreement operates and consider recommendations for future action.
CUSMA in 2026: What Business Should Watch
The first CUSMA Joint Review took place on July 1, 2026, as required under Article 34.7 of the agreement. The review gives Canada, the United States, and Mexico an opportunity to assess the operation of CUSMA and consider recommendations for action.
The review does not mean that CUSMA has expired. The agreement continues under its existing terms while the three countries work through the review process.
Canada has reaffirmed its support for renewing CUSMA and continues to engage with the United States and Mexico on the agreement’s future. Canadian businesses that depend on North American trade should monitor official CUSMA updates from the Government of Canada as discussions continue.
Businesses should also continue reviewing their tariff classifications, rules of origin, supply chains, and landed costs as trade policies develop.
Working with a Customs Broker
CUSMA can provide preferential tariff treatment and facilitate certain aspects of cross-border trade, but businesses still need to meet customs and origin requirements.
A customs broker can assist with customs documentation, tariff classification, origin claims, customs accounting, and other import requirements.
Businesses should also maintain records that support their CUSMA claims and be prepared to provide documentation if customs authorities request it.
For companies that import or export regularly, working with a qualified customs professional can help identify applicable requirements and reduce errors in customs declarations.
Conclusion
CUSMA continues to provide Canadian small businesses with a framework for trading with the United States and Mexico. Its provisions cover preferential tariff treatment, customs administration, digital trade, intellectual property, labor, environmental standards, SMEs, and other areas of North American commerce.
The agreement does not make every cross-border shipment duty-free or remove every customs requirement. Businesses must determine whether their products meet the applicable rules of origin and maintain the documentation needed to support preferential tariff claims.
The 2026 Joint Review also makes it important for Canadian businesses to monitor developments affecting CUSMA. The agreement remains in force, and Canada, the United States, and Mexico continue discussions regarding its operation and future.
For Canadian small businesses looking to expand across North America, understanding CUSMA requirements can help them assess market opportunities, calculate landed costs, and make informed decisions about their import and export operations.
How GHY Can Help You
At GHY, we are committed to helping you expand across different markets. Book a meeting with one of our Trade Experts, we can help you understand the Customs Act and find the customs valuation method that suits your case―saving you time and money in the long run.
We also provide full-service solutions for managing, tracking, and filing all required paperwork associated with cross-border trade. This ensures that all processes are handled efficiently and accurately so that your shipments arrive on time and comply with applicable regulations. With Breeze Customs at your side, you can rest assured that you’ll receive the best service possible at a competitive rate.
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