The U.S. Trade Representative (USTR) announced that on September 30, 2018, Canada, the United States, and Mexico have reached a modernized trade agreement to replace the North American Free Trade Agreement (NAFTA). It will be called the U.S.-Mexico-Canada Agreement (USMCA).
The agreement includes greater access to Canada’s dairy market for U.S. dairy manufacturers.
Regarding possible 25 percent Section 232 tariffs that may be enacted on automobiles, light trucks, and auto parts, the U.S. promised to exclude annually a quota of 2.6 million passenger vehicles or light truck, or up to 32.4 billion U.S. dollars in declared value for auto parts.
The deal failed to resolve Section 232 U.S. tariffs on Canada’s steel and aluminum exports.
The language on how there will be a transition from the current NAFTA agreement, is not yet written.
The USMCA will give American workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region.
If you have any questions regarding the USMCA, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs department at usregaffairs@livingstonintl.com