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USMCA

The U.S.-Mexico-Canada agreement is a free trade agreement between the three countries, also known as CUSMA in Canada and T-MEC in Mexico. Replacing the North American Free Trade Agreement (NAFTA) in 2020, the agreement contains a unique sunset provision where, after six years (in 2026), any of the three parties may decide not to continue the agreement in its current form and begin a period of up to 10 years where USMCA provisions may be renegotiated.

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USMCA Adds Complexity to Automotive Rules of Origin, Experts Say
April 8, 2019 |Tariffs and Trade Negotiations

The United States-Mexico-Canada Agreement contains the most complex automotive rules of origin of any trade deal, significantly raising rule requirements for the industry and steeply increasing costs for compliance programs, several experts said at an April 4 Center for Strategic and International Studies panel. Several industry leaders said the USMCA will force many companies in the automotive supply chain to make substantial changes. “The USMCA rule of origin is now by far the most complex, stringent requirement that exists in any free trade agreement in the world,” said Matt Blunt, president of the American Automotive Policy Council. “It really will force manufacturers to think more about the rule of origin and their sourcing decisions than they’ve ever done before.”