USMCA TRADE AGREEMENT: IMPLICATIONS FOR NORTH AMERICAN MANUFACTURING SUPPLY CHAINS

The U.S.-Mexico-Canada Agreement (USMCA) is set to come into effect on July 1, 2020

The U.S.-Mexico-Canada Agreement (USMCA) will effectively replace the previous 26-year old North American Free Trade Agreement (NAFTA). The new agreement introduces a number of new rules and changes including major amendments to rules of origin (ROO), higher de minimis thresholds, labor rights obligations, customs facilitation, intellectual property, environmental protections, and digital trade and e-commerce. These changes will have implications for the automotive and mobility, retail, agriculture industries as well as energy, chemicals, technology, life sciences and healthcare manufacturing sectors. The upcoming entry-into-force comes at a sensitive moment as the U.S., Mexico, and Canada are all coping with the ongoing COVID-19 pandemic that has forced major companies and suppliers to suspend production at their North American factories over recent months.

This Resilience360 Special Report takes a closer look at how the USMCA could shape North American manufacturing operations and analyzes specific provisions that supply chain professionals will need to prepare for going forward. It also provides a breakdown of some of the key changes in the trade deal and the sectors that will most likely be impacted under the new agreement.

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