Category Archives: United States-Mexico Trade Agreement

CBP Launches United States-Mexico-Canada (USMCA) Center to Coordinate Implementation of USMCA.

May 12, 2020 By in Uncategorized, United States-Mexico Trade Agreement, USMCA Tags: , , , , , Leave a comment
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According to a U.S. Customs and Border Protection media releaes, CBP will open the USMCA Center prior to the start of the USMCA on July 1st. The USMCA Center will be the main communication hub for CBP and will include experts in operations, legal, audit and also virtual representatives from Canadian and Mexican customs authorities. The Center is there to ensure an efficient transition from NAFTA to USMCA.

Part of the center will also help the trade community with a focus on outreach, training and developing new regulations and procedures.

As you are aware, the USMCA replaces NAFTA and has been modernized to reflect technological changes in the past 25 years. The changes cover rules of origin, market to agricultural goods, digital trade, changes to labor rights of workers, and the protection of intellectual property rights.

The media release does want to remind members in the trade community the NAFTA rules will apply until July 1st. If you have any questions how the new USMCA will impact you, please contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

What’s significant about July 1, 2020.

April 25, 2020 By in international trade, trade deal, Uncategorized, United States-Mexico Trade Agreement, USMCA Tags: , , , , Leave a comment
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Photo by Kevin Bidwell on Pexels.com

With all the news coverage focused on the COVID-19 pandemic, the Trump administration quietly notified Congress yesterday (Friday, April 24, 2020) that the U.S.-Mexico Canada Agreement (USMCA) will take effect on July 1st.

If you have any questions how the new policy may impact your business, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

USMCA to be signed on Wednesday 1/29.

January 24, 2020 By in international trade, Uncategorized, United States-Mexico Trade Agreement, USMCA Tags: , , , , Leave a comment
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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

As you are aware, the Senate passed the USMCA legislation last week. According to Reuters, President Trump will sign the USMCA trade agreement next Wednesday at the White House. The Reuters article cites unnamed sources regarding invitations for the upcoming ceremony.

This new US Mexico Canada Agreement (USMCA) wills replace NAFTA and still requires formal approval from Canada.

Contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com if you have questions how the new USMCA may impact your business.

U.S. House passes USMCA, next stop the Senate.

December 12, 2019 By in trade law, Uncategorized, United States-Mexico Trade Agreement Tags: , , , , , , , Leave a comment
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As you are aware, the U.S. House of Representatives passed an updated version of the USMCA earlier this week. The passage by the House includes revisions to an agreement initially agreed to by the US, Mexico and Canada in September 2018.

The next step for the USMCA is the Senate, where it is not expected to be put to a vote until 2020.

What are some of the changes in the USMCA versus NAFTA?

  • If autos are to qualify for no tariffs, then 75% of the components must be manufactured in Canada, Mexico or the United States (currently at 62.5%).
  • 30% of the work on the vehicle must be performed by individuals making $16 or more per hour, with a 40% requirement in 2023.
  • The new agreement allows works in Mexico to unionize.
  • The definition of steel and aluminum for Mexico in regards to the automotive rules of origin includes “melted and poured” in North America.
  • USMCA will be subject to mandatory review every 6 years, if all parties agree, then there is a 16 year period for review, with subsequent reviews every 16 years.

If you have any further questions how your business may be impacted by the USMCA if and when it is passed next year, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

Trump rallies in Wisconsin for USCMA support.

July 13, 2019 By in United States-Mexico Trade Agreement, USMCA Tags: , , , , , , Leave a comment
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Photo by Ricardo Esquivel on Pexels.com

According to the Associated Press, President Donald Trump had a rally in Wisconsin to promote his trade deal with Mexico and Canada, known as the United States-Mexico-Canada Agreement (USMCA). Trump was the first Republican to win Wisconsin since Ronald Reagan in 1984 and recent polling indicates Wisconsin is another battleground state in 2020.

Wisonsin exports $31 million worth of goods to Canada and $15.2 million worth of goods to Mexico; importing $15.5 million in goods from Canada and $9.3 million in goods from Mexico.

The USMCA will likely be ratified in Mexico and Canada, but Congress has not yet supported ratification. Democrat Congress members want strong labor and environmental protections. The AP article said a vote was likely to be held in September at the earliest.

If you have any questions how the new USMCA will impact  your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

United States-Mexico Trade Agreement

August 31, 2018 By in Uncategorized, United States-Mexico Trade Agreement Tags: , , , Leave a comment
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The US and Mexico reached a tentative agreement that overhauls the North American Free Trade Agreement.

Part of the agreements reached between the parties include:

  1. Stricter rules for Mexican car exports to the US – including a requirement that 75% of the content be made in North America and 40-45% of the content made with workers earning at least $16/hour (three times more than Mexico’s minimum wage). This has the goal of discouraging companies to relocate to lower wage Mexico.
  2. Mexico has agreed to pass a law giving workers the right to union representation, and to adopt labor laws that meet UN standards.
  3. Certain steel and aluminum must be sourced in North America
  4. New rules to country of origin for textiles, chemicals, industrial goods.
  5. Intellectual property, copyright holders will have copy right protection in markets of all member countries.
  6. Digital trade, tariffs will be prohibited for digital products that are distributed electronically.
  7. Agriculture, the US and Mexico agreed not to impose tariffs on each other’s agricultural goods and not to use export subsidies.

Call David Hsu if you have any further questions on the new U.S.-Mexico Trade Agreement at 832.896.6288 or by email at attorney.dave@yahoo.com.