USMCA
USMCA, the United States-Mexico-Canada Agreement, is the North American free trade agreement that replaced NAFTA on July 1, 2020 and sets duty-free treatment and rules of origin for trade among the three countries.
What it requires
Goods qualify for duty-free treatment only if they meet product-specific rules of origin, such as 75 percent regional value content for passenger vehicles, and the importer holds a certification of origin with nine minimum data elements, kept for five years. Canada exempts USMCA courier shipments up to CAD 150 from duty and CAD 40 from taxes. At the July 1, 2026 joint review the US declined to extend the term, so the agreement stays in force with annual reviews and would expire July 1, 2036 without an extension.
Why it matters
USMCA qualification is often the difference between zero duty and a tariff bill for goods crossing North American borders, and the 2026 non-renewal means its terms may change through annual reviews. A brand fulfilling Canadian orders from a US warehouse ships duty-free only if its products are USMCA-originating; a Chinese-made phone case relabeled in Ohio does not qualify and pays Canadian duty. Operators should keep supplier origin records, issue certifications correctly and watch the 2027 review, because auto content and other rules are under negotiation.
Related laws
Sources
- CRS: USMCA Joint Review, Process and Role of Congress congress.gov
- CBP: USMCA cbp.gov
Not legal advice.