On September 30, 2018, the U.S. Trade Representative (USTR), Robert Lighthizer, and Canadian Foreign Affairs Minister, Chrystia Freeland, issued a joint statement announcing the United States-Mexico-Canada Agreement (USMCA).
A few highlights of the USMCA include:
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Canada will eliminate its pricing scheme on its Class 6 and Class 7 milk products within six months;
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40 – 45% of auto content to be made by workers earning at least $16 per hour by 2023;
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Increased regional value content rule requiring 75% of auto content be made in North America;
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An enhanced Intellectual Property Rights (IPR) chapter;
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An increase in the de minimis for Canada to CAD$40 for taxes and CAD$150 for duty free shipments, and Mexico will continue at USD$50 for tax free and USD$117 for duty free shipments.
The USMCA will last for 16 years and will incorporate a six-year review of the agreement.
The joint statement may be found here:
The text of the agreement may be found here:
USTR fact sheets on the USMCA may be found here:
