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ARTICLE · 04 OCTOBER 2018

US-Mexico-Canada Agreement: Preliminary Insights For Business

Borden Ladner Gervais LLP
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Last night, Canada and the United States reached an agreement, together with Mexico, on what is essentially a revised NAFTA.

CanadaInternational Law
Matthew Kronby
Matthew Kronby
Milos Barutciski
Milos Barutciski
Jesse Goldman
Jesse Goldman
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Last night, Canada and the United States reached an agreement, together with Mexico, on what is essentially a revised NAFTA. The new agreement will be renamed the United States-Mexico-Canada Agreement (USMCA). This update provides preliminary insights into what the USMCA will change from the NAFTA, what it will not change, and what will be required for the USMCA to enter into force.   

What Will Change

  • Stricter rules of origin for automobiles and parts
    • Including a 75 per cent regional value content (RVC) requirement for passenger vehicles and light trucks; 75 per cent or less for parts; 70 per cent for steel and aluminum and minimum high-wage (US$16) labour value content requirements of 40/45 per cent for passenger vehicles and light trucks respectively. 

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