What is CUSMA / USMCA / T-MEC?
CUSMA, also referred to as USMCA or T-MEC, is a free trade agreement between Canada, the United States, and Mexico that will come into effect as of July 1st, 2020. Rather than being viewed as a wholly new agreement, it has been characterized as NAFTA 2.0.
What has changed from NAFTA?
New Certificate of Origin
A new certificate will be required as of July 1, 2020. Both electronic and digital signatures will be acceptable.
Audits and Claims
Be sure to retain documentation for 6 years. Claims can be made for 4 years from date of import into Canada.
The de minimis threshold has increased to $150 for duties, and $40 for sales tax into Canada. The U.S. rate will remain the same at $800.
There is an increase from 8 to 10 years of the time that a pharmaceutical company can maintain a patent on biologics. Copyright terms were also extended from 50 years after the death of an author to 70 years.
Industries Most Affected
Both the auto and agricultural sectors will be most affected by the new Agreement.