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ARTICLE · 19 OCTOBER 2018

The USMCA – Impact On The Financial Services Sector

On September 30, 2018, Canada and the United States announced they had reached a resolution on certain trade issues and agreed on the text of a new trilateral trade agreement with Mexico to be called the United States-Mexico-Canada Agreement.

CanadaFinance and Banking

On September 30, 2018, Canada and the United States announced they had reached a resolution on certain trade issues and agreed on the text of a new trilateral trade agreement with Mexico to be called the United States-Mexico-Canada Agreement (USMCA). Once ratified, the USMCA will replace the longstanding trilateral North American Free Trade Agreement (NAFTA).

NAFTA renegotiations commenced in August 2017, over 20 years after the agreement first took effect in 1994. The USMCA concludes that renegotiation process, although the agreement will not take effect immediately as each country will need to sign, ratify and implement it. The USMCA is expected to take effect on January 1, 2020. NAFTA, in the interim, will continue to apply to trade between the three countries.

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