USMCA Trade Deal

I just participated in another very informative KPMG webcast. The topic was The USMCA Trade Deal- The Way Forward. Here are some highlights from my notes:

  • USMCA is not NAFTA 2.0, it is much more complex
  • Full ratification is expected by all 3 countries when Canada completes review by early March 2020
  • In force 3 months later most likely July 2020
  • Summary of outcomes includes 5 areas…. Labor, Dispute Settlement, Environmental Provisions, Intellectual Property Rights, Rules of Origin
  • Overview of Agreement; 34 chapters, 13 annexes, 12 side letters
  • Includes uniform regulations and marking rules (not yet released) for all 3 countries

In the biggest differences with the NAFTA agreement, USMCA includes new regulations in the areas of digital trade, e commerce, rules of origin, express shipments, de minimis allowance, and environmental standards. No doubt these changes will have a big impact on supply chains. Trade professionals will be challenged as they get up to speed.