DSV - Global Transport and Logistics

Canada United States Mexico Agreement (CUSMA)

The Canada United States Mexico Agreement (CUSMA) is scheduled to come into effect on July 1, 2020. The agreement replaces the 26-year old North American Free Trade Agreement (NAFTA).

Canada United States Mexico Agreement (CUSMA)

CUSMA is scheduled to come into effect on July 1, 2020, replacing the 26-year old North American Free Trade Agreement (NAFTA). This updated agreement takes into account the technological advancements of trade as well as the recent shift to e-commerce.

Key features of the new CUSMA Agreement include:

  • Changes to format of Certificate of origin, as well as who can complete the certificate;

- Exporter, producer or importer can complete the Certificate of Origin

  • Updated Rules of Origin, Regional Value Content and a new Labor Value Content Rule in the automotive sector;

-40% of value of a passenger car (45% of a light truck) be made of materials, parts and labour (including final assembly) produced or carried out by workers in a plant where the average hourly wage is at least US$16.

  • De Minims threshold increased to $150 CAD for duties;

- De Minims thresholds for express courier import shipments of C$150 for 
duties and C$40 for taxes.

  • More Robust Intellectual Property provisions;

- Removes a provision on the availability of patents for new uses, new methods or new processes of using a known product, as well as a provision on data protection for “new indications” of existing drugs, and
- Includes additional language on an exception related to regulatory reviews, and new language on how parties may meet obligations dealing with patent-term restoration, patent linkage and data protection for small molecule drugs.

If you have any questions, please contact our DSV Compliance Team first at: compliancecanada@ca.dsv.com or your local DSV representative. 

For further information, please visit: 

The Canada-United States-Mexico Agreement: What importers need to know

A New Canada-United States-Mexico Agreement

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