Here is a recap of the latest customs and international trade law news:
Background on CBP Country of Origin Determination and USMCA
All merchandise of foreign origin imported into the United States (U.S.) must generally be marked with its country of origin, and it is subject to a country of origin (COO) determination by CBP. The country of origin of imported goods may be used as a factor to determine eligibility for preferential trade treatment under a free trade agreement.
The U.S.-Mexico-Canada Agreement (“USMCA”) is a free trade agreement that replaced the North American Free Trade Agreement (“NAFTA”) and entered into force on July 1, 2020. The USMCA enjoyed significant bipartisan support and was widely considered a successful effort at “modernizing” NAFTA.
From a labor perspective, the USMCA contains much stronger provisions than its predecessor. Rather than comprising enforceable labor provisions, NAFTA was accompanied by a labor side agreement which only listed guiding principles pertaining to workers’ rights. On the other hand, the USMCA comprises an enforceable chapter dedicated to labor containing strong provisions in favor of workers rights.
Trump’s Trade Legacy
To fully understand the Biden administration’s trade priorities, it’s essential to understand Trump’s U.S. trade actions and the trade environment Biden will inherit. Trump made trade policy a center-stage issue. The administration enacted policies that counter several decades of neoliberal trade policies. The administration also questioned fundamental tenets of the global trading system and the function and purpose of the World Trade Organization. Furthermore, Trump followed through on many trade-related campaign promises by utilizing an array of tools.
Diaz Trade Law’s President, Jennifer Diaz and Associate Attorney, Denise Calle are enthusiastic to announce that another one of their articles, “USMCA Import Considerations for Practitioners,” was published by Bloomberg Law! Below is the article reproduced with permission for your reading pleasure. We’d love to hear your feedback!
You can read the article here, by clicking USMCA Import Considerations for Practitioners (where you’ll have the ability to access all of the great hyperlinks) you cannot click on below.
The U.S.-Mexico-Canada Agreement (“USMCA”) is a pending free trade agreement that will replace the North American Free Trade Agreement (“NAFTA”). The USMCA was signed in December 2019 and was ratified by all three countries in March 2020. Currently, the USMCA is being implemented and the agreement will enter into force on July 1, 2020.
After thirteen months of negotiations, the U.S., Mexico, and Canada have created a new trade agreement called the “United States-Mexico-Canada Agreement” (USMCA) on October 1, 2018.
What is the USMCA?
The USMCA is the new trade agreement that builds on and modifies the trade policies created in the North American Free Trade Agreement (NAFTA), which was signed in 1994. The purpose of the USMCA is to align the trade agreement with the current trade environment. Various industries may experience changes due to the USMCA, which could eventually affect individual consumers. […]