About USMCA

Understanding the United States-Mexico-Canada Agreement and how it benefits Canadian businesses

What is USMCA?

Trade Agreement

The United States-Mexico-Canada Agreement (USMCA) replaced NAFTA in 2020, creating a modern trade framework that reduces barriers and promotes economic growth across North America.

Preferential Tariffs

Products that qualify for USMCA treatment receive preferential tariff rates when traded between Canada, the United States, and Mexico, often resulting in duty-free treatment.

Benefits for Canadian Businesses

Cost Savings

Reduce or eliminate tariffs on qualifying goods exported to the US and Mexico

Market Access

Expanded access to a combined market of nearly 500 million consumers

Competitiveness

Enhanced competitiveness against non-USMCA suppliers in North American markets

Product Origin Requirements

For products to qualify for USMCA preferential treatment, they must meet specific origin criteria:

Wholly Obtained

Products that are entirely grown, produced, or manufactured in Canada, the US, or Mexico.

Substantial Transformation

Products that undergo sufficient processing in USMCA countries to change their tariff classification.

Regional Value Content (RVC)

Products that meet minimum percentage requirements for content originating in USMCA countries (typically 60-75% depending on the product).

De Minimis

Products with non-originating materials that don't exceed specified thresholds (usually 10% of the product's value).

Documentation Requirements

Certificate of Origin

Required for all USMCA claims. Can be prepared by the exporter, producer, or importer. Must include specific data elements and be based on complete information.

Supporting Records

Maintain records supporting origin claims for at least 5 years. Include production records, purchase documents, and any relevant certifications from suppliers.

Ready to Generate Your USMCA Certificate?

Start creating compliant certificates for your Canadian exports today. Professional documentation at $125 CAD + applicable taxes.