FAST FACTS: U.S. TRADE WITH CANADA AND MEXICO
Supports Millions of Jobs: Trade with Canada and Mexico supports 12 million American jobs in every state in the Union, according to reports by the Business Roundtable. In fact, 49 U.S. states count Canada or Mexico as one of their top three merchandise export markets.
Drives U.S. Export Growth: U.S. goods exports to Canada and Mexico have expanded far more since the 2007-2009 recession than U.S. exports to any other country in the world, accounting for about 40% of the growth in overall U.S. goods exports in dollar terms, according to Commerce Department data.
Quadrupled in the Past 25 Years: Trade with Canada and Mexico reached nearly $1.3 trillion in 2017, and the two countries buy more than one-third of U.S. merchandise exports, according to Commerce Department data.
Vital for U.S. Manufacturers: U.S.-manufactured goods exports to Canada and Mexico support the jobs of more than 2 million men and women at more than 43,000 manufacturing firms across the United States, according to the National Association of Manufacturers. Most U.S. manufacturing sectors (38 out of 42) and most states (46 out of 50) count Canada or Mexico as their first- or second-largest foreign purchasers.
Essential for Farmers and Ranchers: U.S. agricultural exports to Canada and Mexico quadrupled from $8.9 billion in 1993 to $39 billion in 2017, according to the American Farm Bureau Federation, and the two countries are top markets for U.S. grains, dairy products, meats, fresh fruits, and vegetables. Nearly one-third of U.S. agricultural exports went to our North American neighbors in 2017, the AFBF adds.
Powers the Service Economy: U.S. services exports to Canada and Mexico tripled from $27 billion in 1993 to $91 billion in 2017, but America’s highly competitive business services sector—including firms in such fields as audiovisual, software, architecture, accounting, engineering and project management, banking, insurance, and many more—continues to enjoy exceptional export growth.
Boosts American Small Businesses: Canada and Mexico are the top two export destinations for U.S. small and medium-size enterprises, more than 120,000 of which sell their goods and services in our two North American neighbors. When an American small business starts exporting, it’s almost always to Canada or Mexico.
HOW USMCA MODERNIZES NORTH AMERICAN TRADE
USMCA modernizes the rules for trade in North America with state-of-the-art provisions in the following areas:
Market Access: Maintains tariff-free access to the Mexican market for all U.S. goods exports. For Canada, maintains the current tariff-free access for nearly all U.S. products and eliminates some remaining barriers facing U.S. dairy and poultry exports. Also prohibits import restrictions on remanufactured goods.
Digital Trade: Creates best-in-class rules to foster U.S. growth in the digital economy for firms of all sectors and sizes, for example, guaranteeing the freedom to move data across borders and prohibiting the forced localization of data, thereby ensuring continued growth for a dynamic area of international commerce.
Intellectual Property: Secures stronger protections for the full range of patents, copyrights and related rights, trademarks, designs, and trade secrets as well as strong enforcement tools to guard against counterfeiting and piracy in order to promote continued U.S. innovation that supports and creates well-paying jobs across all major sectors of the economy.
Agriculture: In addition to securing outstanding market access, establishes modern, science-based sanitary and phytosanitary standards that are the strongest achieved in any trade agreement. Provides transparency and information sharing on measures impacting trade in the products of biotechnology. Regulatory and Technical Barriers to Trade: Promotes regulatory compatibility and best regulatory practices for ICT products, pharmaceuticals, medical devices, cosmetics, chemicals, and other products, while also improving rules prohibiting discriminatory technical barriers to trade.
Financial Services: Ensures a level playing field for U.S. financial institutions, investors and investments in financial institutions as well as cross-border trade in financial services on a nondiscriminatory basis.
Customs: Modernizes customs procedures with regard to advanced rulings, simplified entry, risk management, single window, e-signatures, and self-certification of origin.
State-Owned Enterprises: Establishes rules to ensure that central government state-owned enterprises (SOEs) do not distort competition in the marketplace by guaranteeing regulatory impartiality and requiring that SOE decisions be commercially motivated.
Competition Policy: Ensures that antitrust investigations are fair, transparent, and based on sound economic analysis.
Enforcement: Raises the bar with binding enforcement for all chapters, including labor and the environment.
Additional Resources
USMCA Statement – Entry into Force – July 1, 2020
Release Date: July 1, 2020
The membership of North American Strategy for Competitiveness (NASCO), consisting of industry, government, and academia from across North America, would like to congratulate the three North American nations on the entry into force of the USMCA / CUSMA / T-MEC! The agreement will benefit all North Americans and will ensure our continent’s competitiveness, and dominance, in the global marketplace for years to come.
Thank you to the countless North American federal government agencies, subnational government representatives, industry leaders, trade associations, academia, research organizations and individuals who tirelessly worked to negotiate the agreement, educate the public, and meet the July 1st entry into force deadline.
Our work, however, begins now. We must not be complacent. We must work every day to insist North American governments and industry ACT on the platform provided by the new USMCA / CUSMA / T-MEC. We must continue to develop the relationships, trust, respect, shared ideas and opportunities to ensure our North American continent is the most competitive trading block on earth – and the benefits and prosperity are understood and realized by every North American.
NASCO has always been hard at work moving North America forward, and we are more committed than ever to our objectives and partnerships. We look forward to doing our part to turn the new agreement into positive, lasting, tangible results for our continent.
These are uncertain times, to say the least. It is certain, though, that North America has the strength, resilience, and powerful will to meet these challenging times with focus and determination. We will get through this together.
Congratulations, North America! Let’s get to work.
CBP Launches the United States-Mexico-Canada Center to Coordinate Implementation of USMCA
Release Date: May 11, 2020
WASHINGTON— To help coordinate implementation of the United States-Mexico-Canada Agreement, which enters into force on July 1, U.S. Customs and Border Protection recently opened the USMCA Center.
Staffed with CBP experts from operational, legal, and audit disciplines, as well as with virtual representatives from Canadian and Mexican customs authorities, the USMCA Center is a cornerstone of CBP’s USMCA implementation plan and will serve as a central communication hub for CBP and the private sector community, including traders, brokers, freight forwarders and producers, ensuring a smooth and efficient transition from the North American Free Trade Agreement to USMCA.
“The Center is integral to successful implementation of USMCA, as it will focus on outreach, training, and developing new regulations and procedures, while providing consistency and transparency to the trade community,” said Brenda Smith, Executive Assistant Commissioner of CBP’s Office of Trade. “This all comes down to making sure that American consumers get their goods safely, securely and predictably, while protecting the economic security of the United States.”
USMCA is a new trade agreement that modernizes certain NAFTA provisions, reflecting developments in technology and 21st Century supply chains. USMCA calls for new approaches to rules of origin, agricultural market access, digital trade, and financial services while protecting the labor rights of workers in key industries, and strengthening the protection of intellectual property rights.
The USMCA Center staff will be CBP’s experts on the trade provisions of USMCA, providing guidance to private and public sector stakeholders. Center staff will facilitate a smooth transition from NAFTA by coordinating and scheduling outreach events, responding to training requests, developing and distributing information resources, and updating CBP regulations on pending USMCA topics/issues, while also providing clear and transparent technical guidance on USMCA’s new compliance obligations. Center staff will work closely with Centers of Excellence and Expertise and the ports to ensure CBP’s implementation is uniform and supports U.S. economic security.
Please note: NAFTA rules will continue to apply until July 1 when USMCA enters into force.
Additional information about the agreement, compliance guidance, and implementation efforts may be found on the agency's USMCA webpage. Inquiries for the USMCA Center can be directed to USMCA@cbp.dhs.gov.
Follow the CBP Office of Trade on Twitter @CBPTradeGov.
U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between official ports of entry. CBP is charged with securing the borders of the United States while enforcing hundreds of laws and facilitating lawful trade and travel.