April 27, 2020
CUSMA Trade Agreement To Go Into Effect July 1
U.S. Trade Representative Robert Lighthizer has notified Congress that the new U.S.-Mexico-Canada trade agreement will take effect on July 1, a month later than initially proposed.
In a statement, Lighthizer said both Mexico and Canada had taken measures necessary to comply with their commitments under the U.S.-Mexico-Canada Agreement (USMCA, also referred to as CUSMA), which replaces the 26-year-old North American Free Trade Agreement (NAFTA).
Some industries, including automakers, had been arguing for a delayed implementation because of the difficulties they are facing from the COVID-19 pandemic.
The accord includes tougher rules on labour and automotive content but leaves US$1.2 trillion in annual U.S.-Mexico-Canada trade flows largely unchanged.
How will the new trade agreement affect your business? Click here to learn more.