close
Share with your friends

Canada: Ratification process begins, trade agreement with United States, Mexico

Canada: Trade agreement with United States, Mexico

Canada has begun the process for ratifying its new trade agreement with the United States and Mexico. These procedures, which are currently expected to wrap up in March 2020, are the final steps before the agreement known in Canada as the “Canada-United States-Mexico Agreement” (CUSMA) replaces the North American Free Trade Agreement (NAFTA). This process began on 29 January 2020, when Bill C-4 to implement the CUSMA received first reading.

1000

Related content

Under the terms of the agreement, the CUSMA (which is known in the United States as the USMCA and in Mexico as the T-MEC) will come into force 90 days after all three countries ratify the deal. Only Canada has yet to ratify the agreement; both Mexico and the United States have already completed their domestic procedures. As a result, Canadian importers and exporters need to consider how they will be affected by Canada's new trade agreement.


Background

Canada, Mexico and the United States agreed to enter into a trilateral trade agreement on 1 October 2018 after more than a year of talks and negotiations to update NAFTA, which came into effect in 1994. That version of CUSMA was included in Bill C-100 earlier in 2019, but Canada did not complete its ratification procedures to enact the agreement before Parliament was dissolved for the election. Leaders from all three countries agreed to final revisions to the deal on December 2019.


Read a February 2020 report prepared by the KPMG member firm in Canada

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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