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Apr 02, 2020
The U.S.-Mexico-Canada Agreement (USMCA) taking effect can now be added to the list of events delayed across the globe right now, though this postponement is not from the pandemic, and not all parties are upset. Officials in the United States, Mexico and Canada did not meet a deadline Tuesday that was necessary for the replacement NAFTA to take effect June 1, as was originally planned.
July 1 is now the earliest the deal could formally begin: USMCA rules state that the deal would enter into force, “on the first day of the third month following the last notification” from each of the three countries certifying that they have met their obligations. Those countries must still agree to uniform regulations for auto rules and name panelists for USMCA dispute settlement before the deal can be implemented.
Certain groups, including automakers, welcomed the news, which buys them time to adjust to the agreement’s new rules. The delay also provides a chance for the three countries to take more time to ensure they are ready to comply with the deal, something a group of senators on the Finance Committee had asked the administration to consider earlier this week.
