Outside the most complicated issues to be implemented as part of the U.S.-Mexico-Canada Agreement, such as rules of origin, CBP also sees new “opportunities that are touched on in the agreement,” said Brenda Smith, executive assistant commissioner of CBP’s Office of Trade, during a Jan. 29 interview. “For example, there's some guidance around establishing single windows, there are opportunities for us to validate through site visits compliance with all customs laws and that's a much broader scope than it was before,” she said. President Donald Trump signed the implementing bill into law the same day, though Canada still must give its final approval, and implementing actions must be completed by all countries before USMCA can take effect.
USMCA
The U.S.-Mexico-Canada agreement is a free trade agreement between the three countries, also known as CUSMA in Canada and T-MEC in Mexico. Replacing the North American Free Trade Agreement (NAFTA) in 2020, the agreement contains a unique sunset provision where, after six years (in 2026), any of the three parties may decide not to continue the agreement in its current form and begin a period of up to 10 years where USMCA provisions may be renegotiated.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, as he talked about attending the U.S.-Mexico-Canada Agreement signing ceremony, acknowledged that there are a number of steps before the NAFTA replacement can come into force. He said on a Jan. 28 phone call with reporters that he thinks Canada will ratify “probably within the next 30 days,” but then all parties will have to show how they “will be able to carry out their USMCA obligations so that this can enter into force.” Here at home, uniform regulations for the new rules of origin have to be promulgated before the U.S. can certify it's ready for USMCA. Still, Grassley said, Trump will be running his re-election campaign on replacing NAFTA. “I'm glad he can say that, and I'm willing to say it for him, too,” he said. “He likes to brag, and this is legitimately something to brag about.”
President Donald Trump will hold a signing ceremony for the U.S.-Mexico-Canada Agreement on Jan. 29, a White House spokesman said. Canada's Parliament still needs to ratify the deal, and is expected to begin debate Jan. 29.
International Trade Today is providing readers with some of the top stories for Jan. 13-17 in case they were missed.
An expert panel evaluating the changes associated with the labor chapter under the U.S.-Mexico-Canada Agreement say that there are a lot of unknown details on the rapid response mechanism to enforce complaints about collective bargaining in Mexico. The panel spoke at the Washington International Trade Association on Jan. 16.
The Senate overwhelmingly passed the new NAFTA, though it wasn't by quite as wide a margin as in the House, where more than 95 percent of votes were for the trade pact. The vote, which happened just before the reading of the impeachment articles against President Donald Trump on Jan. 16, was 89-10, with only one Republican voting no. Most of the Democrats who voted no did so because the U.S.-Canada-Mexico Agreement doesn't address climate change.
The Senate passed the U.S-Canada-Mexico Agreement, the replacement for NAFTA, with an 89-10 vote. Now the implementing bill heads to President Donald Trump's desk to be signed. The Canadian parliament must also still ratify the agreement.
Four Senate committees reported the U.S.-Mexico-Canada Agreement out, clearing the way for a floor vote Jan. 16. The Foreign Relations Committee and Commerce Committee had voice votes. The Health, Education, Labor and Pensions Committee voted 22-1 in favor, with Sen. Bernie Sanders, independent senator from Vermont, the only no vote, though Sen. Bill Cassidy, R-La., who previously voted no in the Finance Committee, was not present and did not vote by proxy. In the Appropriations Committee, 29 senators voted for the implementing bill, and two voted no -- Sen. Jack Reed, D-R.I., and Sen. Brian Schatz, D-Hawaii.
Majority Leader Mitch McConnell told reporters Jan. 14 that the Senate will hold a ratification vote on the U.S.-Mexico-Canada Agreement this week.
The Senate Environmental and Public Works Committee sent the U.S.-Mexico-Canada Agreement out of committee on a 16-4 vote, and the Budget Committee moved the implementing bill with a voice vote, though several senators voted no there, as well.