USMCA Implemented on July 1

The United States, Mexico and Canada officially entered into the United States-Mexico-Canada Agreement (USMCA) on July 1, which was created to generate jobs, provide stronger labor protections and expand market access across North America.

The USMCA “modernizes” the North American Free Trade Agreement (NAFTA) and its approach to rules of origin, agricultural market access, digital trade and financial services, according to a press release from U.S. Customs and Border Protection (CBP). Approved by approximately 2,000 tribal leaders, governors and lieutenants, the USMCA was initially signed on Nov. 30, 2018 and ratified by the U.S., Mexico and Canada in the first few months of 2020. 

To coordinate a smooth transition from NAFTA to the USMCA, CBP partnered with Mexican and Canadian customs authorities to create the USMCA Center in May 2020. The Center has provided private and public stakeholders with guidance about adopting the USMCA. In particular, the Center’s staff have coordinated outreach events, responded to training requests, distributed information and updated CBP regulations to reflect USMCA guidelines. 

“The Center will focus on outreach, training, and developing new regulations and procedures, while providing consistency and transparency to the trade community,” said Brenda Smith, Executive Assistant Commissioner of CBP’s Office of Trade, during a press conference on June 29. “This all comes down to making sure that American consumers get their goods safely, securely and predictably, while protecting the economic security of the United States.”

Further, the Center also serves as a communication hub for CBP by connecting communities of traders, private sector workers, brokers, freight forwarders and producers.

For more information about the USMCA, visit CBP’s website here

Article written by Tasnim Hasan on behalf of Global Philadelphia Association.