close
Share with your friends

Canada: Update on trade agreement with United States, Mexico

Canada: Trade agreement with United States, Mexico

Canadian importers and exporters need to consider how they will be affected by the pending trade agreement with the United States and Mexico.

1000

Related content

Leaders from all three countries agreed to final revisions to the United States-Mexico-Canada Agreement (USMCA) on 10 December 2019, meaning that the stage is set for the trade agreement to be considered by each country legislature. Once the legislative procedures to ratify the agreement are completed, the agreement—which Canada calls the “CUSMA”—would replace the North American Free Trade Agreement (NAFTA), and is currently expected to enter into force in 2021.

As a result, companies need to consider how to plan for the new trade agreement and specifically, companies in various industries need 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
  • Reassess the overall structure of their global supply chains


Read a December 2019 report [PDF 180 KB] prepared by the KPMG member firm in Canada

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal