USMCA to enter into force July 1, an effort to increase manufacturing capacity and investment amidst COVID-19 crisis
All necessary requirements for the entry into force of the USMCA on July 1, 2020 were completed.
The United States government today notified the U.S. Congress that the governments of Mexico and Canada have complied with all the domestic procedures required by them for the United States-Mexico-Canada Agreement (USMCA) to enter into force.
The USMCA, which replaces the North American Free Trade Agreement, is expected to support the economic recovery of the North American region after the crisis caused by COVID-19.
“The crisis and recovery from the Covid-19 pandemic demonstrates that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America. The USMCA’s entry into force is a landmark achievement in that effort. Under President Trump’s leadership, USTR will continue working to ensure a smooth implementation of the USMCA so that American workers and businesses can enjoy the benefits of the new agreement,” said Ambassador Robert Lighthizer.
“The T-MEC opens the opportunity to relocate supply chains in the manufacturing sector and particularly at this time related to medical supplies. There are opportunities to increase exports in the agricultural sector, as well as to detonate e-commerce services, where SMEs from all over the country have important opportunities to take advantage of it through the competitiveness chapter ”, highlighted the undersecretary of Foreign Trade of the Ministry of Economy of Mexico, Luz María de la Mora.
Quick facts about manufacturing sector interdependence in North American countries, according to the National Manufacturers Association of America:
- Canada and Mexico are Amercian manufacturers’ most critical partners,
- Canada and Mexico purchase one-fifth of the total value of U.S. manufacturing output
- These exports support about 2 million American manufacturing jobs and 40,000 small- and medium-sized businesses.