USMCA Pre-Implementation Guidelines


The United States-Mexico-Canada Agreement (“USMCA” in the United States,“CUSMA” in Canada and “T-MEC” in Mexico) aims to further integrate trade within the North American region. As businesses deal with surviving and re-engaging in operations post-COVID-19, it was announced that USMCA will be implemented on July 1st, 2020. What should USMCA impacted businesses do now to prepare for the new agreement?


Nepanoa’s USMCA pre-implementation guide describes the most important changes of the agreement and the actions that will prepare businesses to adapt faster and more efficiently.


Anticorruption: Chapter 27Having antibribery and anticorruption policies and controls will not be enough under USMCA. The government and private sector are expected to collaborate to avoid illegal actions that put at risk the fair trade spirit of the agreement.


Digital Trade: Chapter 19USMCA facilitates e-commerce in the region by increasing the de minimis values for Mexico and Canada, raising the value for express shipments, aiming to standardize intellectual property and copyright protection laws and, more significantly, opening the door to transfer business related data between North American countries.


Labor: Chapter 23USMCA aims to even the field among workers in North America by raising wages and working stadards across industries in the region. The agreement also mimics international labor rights.


Rules of Origin: Chapter 4New rules to determine the origi of materials and goods manufactured in the region have been established and apply differently across industries. During the USMCA pre-implementation phase, companies should focus on 2 key objetives: 1) understand how the new rules of origin impact their business and 2) explore beneficial sourcing solutions that facilitateUSMCA compliance.



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