United States-Mexico-Canada Agreement (USMCA): Potential impact on EU companies

14-12-2018

The USMCA is a new trade agreement due to replace the North American Free Trade Agreement (NAFTA). The United States, Mexico and Canada signed the agreement on 30 November 2018. While the text of the agreement may still change, if approved, certain USMCA provisions on rules of origin, geographical indications and voluntary export restraints could have implications for EU companies trading with or present in North America, in particular carmakers, food and drink exporters, and dairy producers. The USMCA could also set precedents for future US trade policy, in departing from key principles in international trade and origin determination.

The USMCA is a new trade agreement due to replace the North American Free Trade Agreement (NAFTA). The United States, Mexico and Canada signed the agreement on 30 November 2018. While the text of the agreement may still change, if approved, certain USMCA provisions on rules of origin, geographical indications and voluntary export restraints could have implications for EU companies trading with or present in North America, in particular carmakers, food and drink exporters, and dairy producers. The USMCA could also set precedents for future US trade policy, in departing from key principles in international trade and origin determination.