Senate Passes USMCA
January 20, 2020
On January 16, 2020, the U.S. Senate voted 89 to 10, with one member not voting, to approve the U.S.-Mexico-Canada Free Trade Agreement, which serves as a replacement or update to the current North American Free Trade Agreement. The U.S. implementation now goes to the President for signature. Prior to coming into effect, Canada must complete its legislative process and the three countries must implement Uniform Regulations.
Form most companies engaged in international trade, the agreement is a worthwhile modernization of the NAFTA. For automotive manufacturers, the agreement will require a major overhaul of compliance processes. Beyond trade in goods, the USMCA addresses several areas of concern in North American trade including intellectual property, digital trade, services, labor and the environment.
A more detailed review is available here.