by Mike Godfrey, Tax-News.com, Washington
16 December 2019
Canada, Mexico, and the US have signed an agreement on amendments to their proposed new trade pact.
In November 2018, the partner states signed the US-Mexico-Canada Agreement (USMCA), which will replace the North American Free Trade Agreement (NAFTA) once implemented. NAFTA has been in force since 1994.
USMCA maintains the tariff-free market access from the original NAFTA. It also includes a range of new market access and tariff requirements for agricultural products, and a new Customs Administration and Trade Facilitation chapter.
Amendments to USMCA were agreed by the three parties on December 10, 2019. The Canadian Government said that the amendments involve improvements in the areas of: state-to-state dispute settlement; labor protection; environmental protection; intellectual property; and automotive rules of origin.
Each party must complete its respective domestic ratification procedures for USMCA to enter into force.