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USMCA UPDATES

Manufacturing in Mexico, New Rules & Regulations

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July 1, 2020 marks the date the United States-Mexico-Canada Agreement (USMCA) goes into effect. After the successful twenty-six year run of NAFTA, the three North American countries sought to modernize the agreement and bring it up to date with our times. In addition to adding provisions for technologies that didn’t exist in the previous agreement, there are also changes to some industry sectors like automotive manufacturing, textiles, and agriculture.

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After more than a year of deadlock, the U.S.-Mexico-Canada Agreement (USMCA) has passed in the U.S. House of Representatives. The USMCA is a revamp of the North American Free Trade Agreement (NAFTA), which eliminated most tariffs and reduced other barriers to trade and investment between the three countries. Under the first twenty years of NAFTA regional trade between the U.S., Mexico and Canada increased sharply from $290 billion dollars in 1993 to more than $1.1 trillion dollars in 2016.

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The United States-Mexico-Canada Agreement (USMCA) was signed into law by U.S. President Donald Trump on Wednesday. After more than a year since the initial handshake between the three countries, ratification by the United States has normalized trade between our connected economies. Manufacturers in Mexico or those with expansion plans are now able to move forward as one of the most successful free trade deals in the world goes into effect.

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