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ARTICLE · 15 JANUARY 2019

The USMCA: Is The Glass Half Empty Or Is The Glass Half Full?

With the execution of the USMCA by Canada, Mexico and the United States on Nov 30, the eventuality of a new trade agreement environment is certain, although what that environment will mean to Canadian suppliers is less than clear.

CanadaGovernment, Public Sector

With the execution of the USMCA by Canada, Mexico and the United States on Nov 30, the eventuality of a new trade agreement environment is certain, although what that environment will mean to Canadian suppliers is less than clear.

Canada is not a party to the USMCA government procurement chapter (Chapter 13). Once the USMCA comes in to force, suppliers in Canada, the U.S. and Mexico will no longer have one trade agreement that provides a common "rule set" for government procurement in North America. Rather, there will be one agreement governing procurement between Canada and the United States (the World Trade Organization Agreement on Government Procurement – WTO-AGP), another between the United States and Mexico (the USMCA), and, when it comes in to force, a third agreement between Canada and Mexico (the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – CPTPP).

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