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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.


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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.


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

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