USMCA Set To Enter Into Force On July 1, 2020

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The U.S.-Mexico-Canada Free Trade Agreement (USMCA) will displace NAFTA and become effective July 1, 2020. Though similar to NAFTA in many ways, key changes in the USMCA include provisions for digital trade, implementation of new local labor standards in the automotive sector, and the adjustment of the rules of origin for a wide variety of products.  Companies entering goods under the USMCA should be sure to have a properly completed USMCA Certificate of Origin at the time of entry. Also, irrespective of the eligibility of the goods under NAFTA, USMCA eligibility should be verified independently since the USMCA rules could be more stringent or more lenient for any number of products.  Also, the USMCA de minimus provisions and various exceptions in the USMCA rules of origin may affect whether goods might qualify thereunder. Although concerns about the timing of the implementation due to the ongoing COVID-19 outbreak were raised, the administration is holding to its July 1 implementation date. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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