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ARTICLE · 21 MAY 2020

No More NAFTA: Ready Or Not, The CUSMA (USMCA) Will Come Into Force On July 1, 2020

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The agreement to replace NAFTA, the CUSMA will come into force on July 1, 2020, less than two months from now, and Canadian importers and exporters should be aware of how the new agreement will affect their business.

CanadaInternational Law
Peter Kirby
Peter Kirby
Clifford Sosnow
Clifford Sosnow
Faye Voight
Faye Voight
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The agreement to replace NAFTA, the Canada-United States-Mexico Trade Agreement ("CUSMA") will come into force on July 1, 2020, less than two months from now, and Canadian importers and exporters should be aware of how the new agreement will affect their business. This bulletin highlights the major differences between NAFTA and CUSMA. We will examine the changes in more detail in separate bulletins to follow.

Rules of Origin

While most rules of origin will remain the same under CUSMA, there have been significant changes in the automotive sector, pharmaceuticals and health care products, information technology products, cosmetics and chemicals. In many cases, the rules have become stricter, and products that used to qualify for preferential treatment under NAFTA may not qualify under CUSMA. Every company that has been exporting or importing its products under the NAFTA is well advised to review whether and how they may be affected by any changes to the rules under

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