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The USMCA will replace the North American Free Trade Agreement (NAFTA). U.S. Customs and Border Protection (CBP) is the United States’ lead implementing agency with respect to the USMCA. CBP will ensure, coordinate, and guide the implementation of the USMCA for CBP and our stakeholders.
- Rules of Origin and Origin Procedures
- Customs Administration and Trade Facilitation
- Government Procurement
- Labor
- Intellectual Property
- Digital Trade
- Investment
- Energy
- Telecommunications
- Small and Medium-Sized Enterprises
Chapters 4 and 5 of the USMCA contain the provisions that regulate the rules of origin and origin procedures that will apply to all goods exported within North America. USMCA relaxes rules of origin for certain sectors (i.e., chemical, Arabic gum, etc.), and tightens them for others (i.e., automotive, steel). Automotive rules of origin incorporate ...
USMCA refers to Express Shipments that require expedited customs procedures and will not be subject to customs duties or taxes if valued below fixed amounts of US$800 for the United States; US$117 for customs duties and US$50 for taxes, for Mexico; and CA$150 for customs duties and CA$40 for taxes, for Canada (Article 7.8)
Chapter 13 of USMCA remains quite similar to NAFTA Chapter X, although it no longer applies to Canada. Chapter 13 now openly allows Parties to maintain measures that provide preferential treatment for small and medium-sized enterprises (SMEs), subject to certain requirements applicable to the extent possible and if appropriate (Article 13.20). As p...
USMCA incorporates a Chapter on the labor provisions (NAFTA labor provisions were contained in a parallel side agreement, North American Agreement on Labor Cooperation or NAALC), allowing the use of the USMCA State-to-State dispute settlement mechanism (Chapter 31) if labor violations referred therein are recurrent and affect trade or investment ac...
Considered as a high-standard Intellectual Property (IP) chapter, USMCA revamps the outdated 18 IP Articles under NAFTA Chapter XVII, with 89 new articles, plus annexes, contained in Chapter 20. This is probably the Chapter with more notable changes compared to its NAFTA predecessors. Patents will have an additional protection if subject to "unreas...
Chapter 19 was impossible to achieve at the time NAFTA was negotiated. USMCA digital trade provisions include prohibiting customs duties on electronically transmitted products (computer program, text, video, image, sound recording or other product that is digitally encoded, produced for commercial sale or distribution, and that can be transmitted e...
Probably the most significant change made to the investment Chapter (XI under NAFTA, 14 under USMCA), is contained in the Investor-State Dispute Settlement (ISDS) provisions. USMCA contains more limited protections than those contained in NAFTA. Investors (except for those in certain industries such as oil and gas, power generation, telecommunicati...
Unlike NAFTA, which dedicated a specific section to the energy sector, the USMCA appears to limit its regulation to Chapter 8, focused mainly on the Mexican hydrocarbons sector. Under Article 8.1, the USMCA recognizes: a) Mexico's sovereign right to reform its legal regime (which implies due process to the existing one), and b) Mexico's ownership o...
Unlike NAFTA, USMCA Chapter 18 covers mobile service providers promoting reasonable rates of international mobile roaming services (Article 18.25), and binds Mexico to its 2013 telecommunications constitutional reforms, which provides for an independent regulatory commission, established interconnection obligations, avoid anti-competitive measures ...
This Chapter is a first for the United States, which attempts to promote cooperation to increase SME's trade and investment opportunities under the USMCA (Canada and Mexico already share similar obligations under the CPTPP). Chapter 25 is mostly cooperative and information sharing between USMCA Parties and SMEs with a robust trilateral Committee th...
The USMCA will replace the North American Free Trade Agreement (NAFTA). U.S. Customs and Border Protection (CBP) is the United States’ lead implementing agency with respect to the USMCA. To this end, CBP has launched an internal USMCA Coordination Center, which will ensure, coordinate, and guide the implementation of the USMCA for CBP and our stakeholders.
- Agriculture. Canada secured several beneficial outcomes for agriculture, including: a modernized Committee on Agricultural Trade which provides a forum for Parties to address issues and trade barriers.
- Automotive. There are modernized rules of origin for the automotive industry. The outcome on automotive rules of origin includes: a 75% regional value content requirement.
- Digital trade. CUSMA includes a new chapter to facilitate digital trade (digital products distributed electronically): digital trade is growing exponentially and guarantees need to be made to exporters that the borders will stay open as we go forward.
- Intellectual property. CUSMA establishes a legal framework of minimum standards for the protection and enforcement of IP rights in North America. The chapter includes obligations on copyright and related rights, trademarks, geographical indications, industrial designs, patents, data protection for pharmaceutical and agricultural chemical products, trade secrets, and IP rights enforcement.
The U.S. goods and services trade deficit with USMCA was $184.6 billion in 2022. U.S. goods exports to USMCA in 2022 were $680.8 billion, up 16.0 percent ($94.1 billion) from 2021 and up 34 percent from 2012. U.S. goods imports from USMCA totaled $891.3 billion in 2022, up 20.5 percent ($151.5 billion) from 2021, and up 48 percent from 2012.
Jun 30, 2020 · The U.S. – Mexico – Canada Agreement (USMCA) is a trade agreement between the named parties that entered into force on July 1, 2020. To help coordinate the implementation of the USMCA, and provide comprehensive guidance to stakeholders, CBP stood up the USMCA Center in March 2020. The Center, located within CBP’s Office of Trade, Trade ...
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Will the USMCA replace the North American free trade agreement (NAFTA)?
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What happened to the North American free trade agreement (NAFTA)?
When will the US – Mexico – Canada Agreement (USMCA) be implemented?
The United States, Mexico, and Canada have reached an agreement to modernize the 25-year-old NAFTA into a 21st century, high-standard agreement. The new United States-Mexico-Canada Agreement (USMCA) will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America.
