Understanding the United States-Mexico-Canada Agreement and how it benefits Canadian businesses
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.
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.
Reduce or eliminate tariffs on qualifying goods exported to the US and Mexico
Expanded access to a combined market of nearly 500 million consumers
Enhanced competitiveness against non-USMCA suppliers in North American markets
For products to qualify for USMCA preferential treatment, they must meet specific origin criteria:
Products that are entirely grown, produced, or manufactured in Canada, the US, or Mexico.
Products that undergo sufficient processing in USMCA countries to change their tariff classification.
Products that meet minimum percentage requirements for content originating in USMCA countries (typically 60-75% depending on the product).
Products with non-originating materials that don't exceed specified thresholds (usually 10% of the product's value).
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.
Maintain records supporting origin claims for at least 5 years. Include production records, purchase documents, and any relevant certifications from suppliers.
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