Legal Issues relating to the USMCA (aka CUSMA & TMEC)
(replacement to the legacy NAFTA)
Summary of the USMCA (“NAFTA re-negotiation”)
The new USMCA-CUSMA-TMEC agreement has been ratified by the United States, Canada, and Mexico:
U.S. – Mexico – Canada Agreement Text
United States-Mexico-Canada Agreement Implementation Act (Pub. Law No. 116-113)
United States-Mexico-Canada Agreement: Likely Impact on the U.S. Economy and Specific Industry Sectors; ITC Publication No. 4889; Investigation No. TPA 105-003
Final U.S. implementing regulations
Final rules of origin.
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After 25 years of trade occurring under the NAFTA, the USMCA comes into force in 2020 with a few key changes. One of these involves the certification process. Parties wishing to import “originating goods” under the USMCA must have a valid certificate of origin on file at time of claim, which may now be completed by either the Exporter, the Producer, or the Importer. The certifying party must also be able to provide the support proving the “originating goods” status that was used as the basis for certification. The format of the certificate is no longer prescribed, however, certifications must contain a set of minimum data elements. For further information, see Chapter 5 Origin Procedures, Article 5.2 and Annex 5-A.
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CURATED NEWS ON THE USMCA & NAFTA
September 28, 2021: CBP: USMCA: Federal Register Notice that textile and apparel imports from Mexico will require an eCERT filing. (Effective date: October 5, 2021).
June 30, 2021: CBP: USMCA Interim final rule. re: Marking Rules, Tariff-rate Quotas, and Other Provisions.
June 30, 2021: CBP: USMCA NPRM re: Non-Preferential Origin Determinations for Merchandise Imported from Canada or Mexico.
July 1, 2020: USMCA enters into force as of July 1, 2020. (NAFTA preferential treatment cannot be claimed on or after July 1, 2020).
June 3, 2020: USTR: USMCA: Final implementing regulations and rules of origin.
April 25, 2020: USTR: Statement that the USMCA will enter into force on July 1, 2020.
April 20, 2020: CBP: CSMS #42429822 - US-Mexico-Canada Agreement (USMCA) Interim Implementation Instructions.
USMCA Implementation Act (Public Law No: 116-113)
April 6, 2020: Canada announces that it is ready for implementation of USMCA. Mexico announces as well. The US response as of today is unclear, as the USTR had signaled summer, and the Covid response will take precedence.
April 2, 2020: Mexico: Covid-19: Dario Official: All non-essential Maquila’s shut-down. English version (by google translate).
March 13, 2020: Canadian House and Senate approve USMCA. Next step, regulatory implementations.
January 16, 2020: USMCA: Passed by Senate (89-10). Next to be signed by President Trump and to go before Canadian parliament for ratification the agreement.
December 20, 2019: USMCA: House votes 385-41 to pass the USMCA forward.
June 8, 2019: State Department: US-Mexico Joint Declaration (averting Trump tariffs).
May 31, 2019: POTUS clarifies intent that recent duties on Mexico would escalate each month and reach 25% (if not averted).
May 30, 2019: POTUS threatens 5% duties on Mexico on the 10th of June.
May 30, 2018: POTUS has sought fast-track approval for the USMCA however, the House is free to ignore the request due to objections over short-comings in environment, labor standards, enforcement, and biologics. See, House W&M statement.
April 29, 2019: USMCA crystallizing as an issue for the 2020 election. Senator Grassly’s WSJ editorial states that USMCA is dead in the Senate unless sec. 232 tariff are removed; meanwhile, House Speaker Pelosi will keep it from a vote until Mexico implements exiting labor reforms, and new provisions are added.
April 18, 2019: USMCA: ITC Report on economic impact of the USMCA. USTR Report on Auto impact.
April 4, 2019: POTUS: Mexico border issues: “Mexico understands that we’re going to close the border or I’m going to tariff the cars. I’ll do one or the other. And probably start off with the tariffs. That will be a very powerful incentive. . . If the drugs don’t stop—Mexico can stop them if they want—we’re going to tariff the cars. The cars are very big. And if that doesn’t work, we’re going to close the border. But I think that’ll work. So it’s massive numbers of dollars… You know I will do it. I don’t play games. I’ll do it. We’re going to give them a one-year warning. And if the drugs don’t stop, or largely stop, we’re going to put tariffs on Mexico and products, in particular cars. The whole ballgame is cars. It’s the big ballgame. With many countries, it’s cars. And if that doesn’t stop the drugs, we close the border.”
April 3, 2019: CBP: Border wait time
March 27, 2019: CBP Commissioner on Border Crisis
February 26, 2019: CRS Report on NAFTA/USMCA issues, including withdrawal.
January 29, 2019: USTR: Legal changes needed to implement USMCA.
January 29, 2019: New Democrat Coalition: noncommittal on USMCA.
December 1, 2018: Trump to terminate NAFTA to force the 2019 passage of USMCA.
November 30, 2018: Canada and Mexico sign the USMCA during the G20.November 26, 2018: GOB: Mexico and Canada ready to sign USMCA at the G20 summit.
November 21. 2018: Am. Shipper article: Tariffs complicate USMCA prospects
October 1, 2018: USTR: Canada Joins the US-Mexico Agreement. Text of the USMCA released.
August 4, 2018: NAFTA: Canadian Minister is "keen" to get back to the table - after having being excluded from U.S.-Mexico talks.
May 23, 2018: Article: Trump calls Canada "spoiled" and cited to auto deal.
April 6, 2018: Article: 8th round in Washington.
February 25, 2018: Article: 7th Round in Mexico.
January 20, 2018: NAFTA: Article: 6th Round of negotiations begins next week.
January 16, 2018: Hill Times Article: Re-negotiations: Canada may capitulate to certain 'unthinkable' US demands.
January 10, 2018: WTO: Canada files dispute to the WTO over Softwood Lumber.. Financial Times Article. USTR Lighthizer's response.
January 5, 2017: Unified Cargo Processing to expand to the Phoenix-Mesa Gateway Airport, Arizona.
December, 2017: CBP: Video explanation of Unified Processing Program (CBP/SAT joint inspections)
October, 2017: Forbes: Article: Trump Pushes NAFTA Talks Onto Treacherous New Timeline
NYT: Article: Nafta Talks’ Extension May Make for Slow, Painful Demise.
May 18, 2017: Trump Administration issues NAFTA renegotiation notice letters.