On December 19, 2019, the U.S. House of Representatives voted in favour of the new North American trade agreement, referred to as USMCA (United States-Mexico-Canada Agreement) in the U.S. and CUSMA (Canada-United States-Mexico Agreement) in Canada. Amendments to the agreement were signed by Canada, U.S. and Mexico on December 10, 2019. The new deal will replace the existing North American Free Trade Agreement (NAFTA) which was implemented in 1994.
The trade agreement will now move to the U.S. Senate for ratification in the U.S. in the new year. Mexico has already ratified the deal and ratification is expected in Canada after the parliamentary winter break ending January 27, 2020.
Importers should obtain valid Certificates of Origin for both trade agreements for 2020, to ensure there is no lapse in preferential trade status, prior to the new deal taking effect. Once the new trade agreement becomes effective, NAFTA Certificates of Origin will no longer be valid and must be replaced with USMCA/CUSMA Certificates of Origin.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.