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Canada’s Trade Deal with U.S. and Mexico Ready to be Ratified

Trade Deal with U.S. and Mexico Ready to be Ratified

Canada’s new trade agreement with the United States and Mexico will soon be enacted.

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Canadian importers and exporters should consider how they will be affected by Canada's new trade agreement with the United States and Mexico now that it will soon be enacted. Leaders from all three countries agreed to final revisions to the United States-Mexico-Canada Agreement (USMCA) on December 10, 2019, meaning that it is set to enter into effect once each country completes the legislative procedures necessary to ratify the agreement. The agreement, which Canada calls the CUSMA, will replace the North American Free Trade Agreement (NAFTA), and is currently expected to enter into force in 2021.

As a result, it is important for companies to take time before the CUSMA is officially enacted to properly plan for the impact of this new important trade agreement on their overall operations. Specifically, companies in various industries should take action now to:

  • Review the new rules of origin for their products
  • Validate product classifications and costing information
  • Understand the impact of new "de minimis" thresholds on cross-border transactions, and
  • Reassess the overall structure of their global supply chains.

Download this edition of the TaxNewsFlash to learn more.

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