U.S. Customs and Border Protection (CBP) implemented the landmark United States-Mexico-Canada Agreement (USMCA) at 12:00 AM on July 1. The USMCA replaces the North American Free Trade Agreement (NAFTA).
“The USMCA completely replaces NAFTA and marks the beginning of a new era of American prosperity,” said Mark Morgan, CBP Acting Commissioner. “Thanks to President Trump’s leadership and his ability to secure the bipartisan support of Congress, the USMCA delivers a tremendous win for American businesses and consumers.”
The USMCA modernizes trade among the United States, Canada, and Mexico, introducing updated rules of origin, customs administration and trade facilitation provisions, intellectual property rights protections, and fair labor conditions. CBP is poised to use all of its available trade facilitation and enforcement tools to implement the USMCA on July 1.
“The USMCA establishes North American trade rules as the new global gold standard and offers CBP new tools to carry out our vital trade facilitation and enforcement mission,” said Brenda Smith, Executive Assistant Commissioner, CBP Office of Trade. “CBP will continue to work closely with the trade community, our U.S. Government partners, and our Mexican and Canadian counterparts to ensure a smooth transition from NAFTA and support the prosperity of the U.S. economy, American workers, and public safety.”
CBP has taken a number of steps to support trade stakeholders and the public with navigating the transition to the USMCA:
- In March, CBP launched the USMCA Center. Staffed with trade enforcement experts, the Center is a onestop shop for the trade community and government partners for questions and concerns related to the USMCA.
- CBP has issued compliance guidance in a variety of mediums, including implementing instructions, informational videos, webinars, factsheets, and web postings.
- CBP.gov’s USMCA webpage now features a sophisticated “smart” search engine chatbot that will help users find answers to common questions.
- CBP has briefed numerous trade associations and industry groups on implementation.
- CBP’s Commercial Customs Operations Advisory Committee (COAC) launched two working groups to hear concerns and recommendations from the private sector on USMCA implementation and the specific new criteria for the automotive rules of origin.
The USMCA enters into force on July 1, 2020. Generally, for merchandise entered into commerce on or before June 30, 2020, NAFTA rules will apply. Additional information about the USMCA can be obtained at CBP.gov or via email at USMCA@CBP.DHS.gov.