close
Share with your friends

CUSMA — New trade deal takes effect July 1, 2020

CUSMA — New trade deal takes effect July 1, 2020

Canadian importers and exporters should prepare for the Canada-United States-Mexico Agreement (CUSMA) to enter into force on July 1, 2020.

1000

Related content

Canada, the United States and Mexico have now completed the legislative procedures for ratification of the agreement. However, the countries are still discussing whether to allow a longer transition period for the auto sector to comply with the new rules of origin.

Now that the CUSMA, which is also referred to as the United States-Mexico-Canada Agreement (USMCA), will replace the North American Free Trade Agreement (NAFTA) on July 1, 2020, affected importers and exporters should properly plan for how it may impact 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
  • Solicit new qualifying attestations from North American suppliers to replace the existing NAFTA certificates of origin
  • Understand the impact of new "de minimis" thresholds on cross-border transactions
  • Reassess the overall structure of their global supply chains

Download this edition of the TaxNewsFlash to learn more.

© 2020 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal