News Article

USMCA Delayed till July 1

By Alejandro Enríquez | Wed, 04/01/2020 - 12:10

With no formal notice from Canada on the new agreement, enforcement is postponed to July 1, only if Canada gives notice during April

USMCA will arrive as early as July 1, not on June 1 as US President Donald Trump originally stated, since Canada has not given formal notice to the US and Mexico on its readiness to proceed with the agreement.

The earliest date for the agreement to entry into force will be July 1."

USMCA's text indicates that the agreement will take effect after "each party shall notify the other parties, in writing, once it has completed the internal procedures required for the entry into force of this protocol. The protocol and its annex shall enter into force on the first day of the third month following the last notification."

Considering that such formal notice has not been sent yet, even if it takes place on April, the earliest date for the agreement to entry into force will be July 1, the third month after the last procedure takes place.

US Senators Urge Trump to Reconsider USMCA’s Enforcement Date

Delaying USMCA a month might not be enough, though. The delay comes after Democratic and Republican Senators addressed a letter to US Trade Representative, Robert Lighthizer, asking him to “to delay the proposed June 1 enforcement date and work with Congress and stakeholders to determine a more feasible timeline.”

The letter was signed by Sen. Charles Grassley, Chairman of the US Senate Committee on Finance, and Ron Wyden, Ranking Member of the same committee, along with other 17 senators from both parties who considered June 1 as a ‘highly aggressive’ enforcement date.

June 1 deadline would be highly aggressive." Sen. Grassley

“Even absent the pandemic, a June 1 deadline would be highly aggressive and raises questions as to whether businesses have the information they need to adjust to the new rules and comply by that date,” the letter stated.

Earlier this week, Mexican automakers have urged the Mexican government to push for an enforcement of automotive rules of origin until January 1, 2021.

The data used in this article was sourced from:  
CBC, US Senate, Mexico Business News
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst