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ARTICLE · 14 JULY 2020

A Deep Dive Into CUSMA: New Automotive Rules Of Origin

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Blake, Cassels & Graydon LLP

Blake, Cassels & Graydon LLP

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The Canada-United States-Mexico Agreement (CUSMA) will come into force on July 1, 2020, following signing of the original text on November 30, 2018, and after further amendments were agreed upon as of December 10, 2019.

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The Canada-United States-Mexico Agreement (CUSMA) will come into force on July 1, 2020, following signing of the original text on November 30, 2018, and after further amendments were agreed upon as of December 10, 2019. The implementation of the CUSMA has been accelerated by the parties, with Canada being last to adopt implementing legislation on March 13, 2020, including on that single day being passed by the House of Commons, all three readings in the Senate and finally receiving royal assent by the governor-in-council. The CUSMA replaces the previous North American Free Trade Agreement (NAFTA), and while many of the NAFTA provisions are carried forward in CUSMA, by far the most significant changes are those applicable to the automotive industry. In this bulletin, we provide an overview of the CUSMA provisions specifically targeting the automotive industry and specifically the new rules of origin applicable to automotive goods.

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