As of the beginning of October 2018, there is a new trade agreement between Canada, Mexico and the United States, which is called the USMCA Agreement (United States Mexico Canada). Highlighted below are some of the results of the agreement:
- Automotive Changes:
- 75% of auto parts must be made in North America, over time, to qualify for zero tariffs (Canada, Mexico, USA).
- 40-45% of car and truck parts must be made by workers earning at least $16 per hour.
- Canada will increase market access for US dairy, poultry, and eggs due to eliminating price increase policies on US dairy products.
- USA will allow more Canada dairy, peanuts and peanut products, and some sugar into their country.
- Pharmaceutical/Biotech: Stronger protections for patents and trademarks for 10 years before facing generic competition.
- Books/Software/Video: Added penalties are outlined for pirated movies while prohibiting duties on books, software, and video games.
- Improved labor and environmental rights are included.
- A process remains in place to challenge each other’s anti-dumping policies and countervailing duties via a trilateral council.
- The three nations will review the agreement in 6 years.
These changes will be instituted at different times over the next few years. Gallagher Transport has over 25 years of importing and exporting experience and remain committed to staying ahead of changes that affect your business and your bottom line. Please let us know if we can assist with any trade needs for you or your business.