2 July 2020
New Trade Agreement between US, Mexico, and Canada Enters into Force
story highlights

The Agreement referred to as 'USMCA' in the US, ‘CUSMA’ in Canada, and ‘T-MEC’ in Mexico replaces the North American Free Trade Agreement (NAFTA).

Through an Environmental Cooperation Agreement, the parties agree to continue to cooperate through the Commission for Environmental Cooperation.

The US – Mexico – Canada Agreement (‘USMCA’ in the US, ‘CUSMA’ in Canada, and ‘T-MEC’ in Mexico) entered into force on 1 July 2020. The trade agreement between the three countries replaces the North American Free Trade Agreement (NAFTA).

On the occasion, the US Customs and Border Protection (CBP), the agency in charge of the treaty’s implementation in the US, launched the USMCA Center to coordinate CBP’s implementation of the treaty in the US. According to CBP, the Agreement “modernizes certain NAFTA provisions, reflecting developments in technology and 21st century supply chains” and “delivering more efficient trade, stronger enforcement and more economic opportunities for North America.” The USMCA “calls for new approaches to rules of origin, agricultural market access, digital trade, and financial services,” and seeks to protect the labor rights of workers in key industries and to strengthen the protection of intellectual property rights.

The Government of Canada has highlighted that the “CUSMA outcomes preserve key elements of the long-lasting trading relationship and incorporate new and updated provisions that seek to address 21st-century trade issues and promote opportunities.” 

Mexico’s Ministry of Economy highlights that achievements of the T-MEC Agreement include: maintaining free trade for all originating goods; introducing new disciplines for the trade of remanufactured goods; modernizing certification schemes and verification procedures; facilitating and streamlining the movement and clearance of goods at customs and transparency in administrative procedures; establishing coordination commitments between the agencies that intervene at border crossings; and incorporating elements related to copyright, trademarks, geographical indications, patents, protection of undisclosed data, industrial designs, trade secrets, limitation scheme of suppliers of Internet services, and enforcement provisions.

Through an Environmental Cooperation Agreement, the parties agree to continue to cooperate through the Commission for Environmental Cooperation. Suggested areas for the CEC work program include: strengthening environmental governance; reducing pollution and supporting strong, low emissions, resilient economies; conserving and protecting biodiversity and habitats; promoting the sustainable management and use of natural resources; and supporting green growth and sustainable development. 

[Text of the Agreement] [Side Letters][Environmental Cooperation Agreement][CBP USMCA Webpage] [US Department of State Press Statement] [Proclamation to Take Certain Actions Under USMCA Implementation Act and for Other Purposes] [Government of Canada CUSMA Webpage] [Government of Mexico Release on T-MEC Entry into Force (in Spanish)]

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