Washington | Reuters — U.S. Trade Representative Robert Lighthizer on Friday said he has notified Congress that the new U.S.-Mexico-Canada trade agreement will take effect on July 1, a month later than initially proposed.
In a statement, Lighthizer said both Mexico and Canada had taken measures necessary to comply with their commitments under the U.S.-Mexico-Canada Agreement (CUSMA), which replaces the 26-year-old North American Free Trade Agreement (NAFTA).
Some industries, including automakers, had been arguing for a delayed implementation because of the difficulties they are facing from the coronavirus pandemic.
Read Also
Canadian trade tribunal to examine imports of frozen, canned vegetables
Canadian officials will look into whether global imports of frozen and canned vegetables are threatening Canadian growers and processors.
Mexico had asked the U.S. and Canada for a longer transition period for the auto industry to certify that it was meeting new, more stringent North American content rules.
Lighthizer said his office would work to ensure a smooth implementation of the new trade rules.
“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,” Lighthizer said in a statement, calling CUSMA’s entry into force “a landmark achievement in that effort.”
The accord includes tougher rules on labour and automotive content but leaves US$1.2 trillion in annual U.S.-Mexico-Canada trade flows largely unchanged. U.S. President Donald Trump had been a critic of NAFTA.
— Reporting for Reuters by Andrea Shalal and David Lawder.
