The new trade agreement between USA, Canada and Mexico went into effect July 1st, 2020. Find out details on key changes from NAFTA, the timeline, and next steps.
What Do You Need to Know?
Over the years, revolutionary advances in technology, telecommunications and e-commerce have combined to provide a strong rationale for modernizing and improving NAFTA to better reflect the way businesses now engage in international trade.
The United States-Mexico-Canada Agreement (USMCA) or Canada-United States-Mexico (CUSMA), is set to replace the 26-year-old North American Free Trade Agreement (NAFTA) on July 1, 2020, therefore creating a modernized free-trade system between the three countries. This modernized free-trade addresses recent and emerging critical issues, such as:
- Harmonization of regulatory systems, e-commerce and the protection of intellectual property
And provides changes to:
- Various rules and processes which govern how specific goods are traded within North America and;
- Mechanisms for how trade disputes are resolved
We detail all new provisions of the USMCA/CUSMA below.
Webinar On Demand:
Everything you need to know about the new trade agreement coming into force, how it will affect your business, and what you need to do to prepare.
Did You Know?
As a result of NAFTA:
- Between 1993 – 2019, trade between the three countries quadrupled from $290 billion to $1.23 trillion
- Tariffs were lowered, some eliminated, which reduced prices of imports
- Economic growth increased substantially – agriculture, automobiles, and the services sectors
- Job creation increased – manufacturing expanded
- Foreign direct investment increased between countries – businesses attained opportunities to develop and expand into different markets
- Government spending reduced – firms could bid on government contracts