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ARTICLE · 22 SEPTEMBER 2020

Out With NAFTA, In With CUSMA

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The agreement to replace NAFTA, the Canada-United States-Mexico Trade Agreement came into force on July 1, 2020 and Canadian importers and exporters should be aware of how the new agreement will affect their business.

CanadaInternational Law
Clifford Sosnow
Clifford Sosnow
Faye Voight
Faye Voight
Peter Kirby
Peter Kirby
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The agreement to replace NAFTA, the Canada-United States-Mexico Trade Agreement (CUSMA) came into force on July 1, 2020 and Canadian importers and exporters should be aware of how the new agreement will affect their business. This bulletin highlights some of the major differences between NAFTA and CUSMA.

Rules of Origin

A notable change under CUSMA is in the rules that apply to the origin of goods. 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.

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