The Canada-United States-Mexico Agreement (CUSMA) has entered into force as of July 1, 2020. The modernization of the NAFTA is a significant milestone in the trade relationship between Canada, the United States and Mexico. Amid the COVID-19 pandemic, the implementation of the CUSMA will improve predictability and stability for the agriculture and agri-food sector – including preserving our essential and privileged access to the U.S. and Mexican markets.
The CUSMA preserves key elements of the North American Free Trade Agreement (NAFTA) and incorporates new and updated provisions that seek to address trade issues and promote business opportunities for Canadians. While there are some key changes that will affect exporters and importers upon implementation of the CUSMA, the majority of all trade will be unaffected by the transition from the NAFTA to the CUSMA.
To help understand the provisions and administration of the new Agreement, here are some helpful resources:
- Agriculture outcomes
- Canada Border Services Agency (CBSA)
- The U.S. Customs and Border Protection (CBP)
- Dairy Export Thresholds
- Canada is required to put in place export charges for certain dairy products, which apply when its global exports exceed thresholds specified in the Agreement.
- Supply managed products
- CUSMA provides for new quota-based access into Canada for American dairy, poultry, and egg products.
- Refined sugar and sugar-containing products TRQ administration
- CUSMA includes new quota-based access into the U.S. for Canadian refined sugar and sugar-containing products.]]
- U.S. Federal Register Notices for an increase in the refined sugar TRQ in 2020 and U.S. administration of new sugar-containing products TRQ.
- CUSMA allows Canadian-registered grain varieties grown in the U.S. to receive an official Canadian grain grade, and removes the requirement of a country of origin statement on official inspection certificates for grain grown in the U.S.