How can you succeed with USMCA trade agreements?

1 Know the rules of origin

One of the main changes that USMCA introduces is the stricter rules of origin for certain products, especially in the automotive sector. This means that a higher percentage of the value of a product must be sourced from the USMCA region in order to qualify for duty-free treatment. For example, 75% of the value of a vehicle must come from the USMCA region, up from 62.5% under NAFTA. You should review the rules of origin for your products and make sure you have the necessary documentation to prove their origin. You should also check if your suppliers and customers are compliant with the rules of origin and if they need to adjust their sourcing strategies.

2 Explore new markets

USMCA also opens up new opportunities for market access and trade diversification. For instance, USMCA eliminates some tariffs and quotas on agricultural products, such as dairy, eggs, poultry, and sugar, that were previously restricted under NAFTA. It also improves the protection of intellectual property rights, labor standards, environmental regulations, and digital trade. These changes can create new demand and supply for your products and services, and reduce the risks and costs of doing business across the borders. You should research the potential markets and customers for your products and services, and identify the best ways to reach them and meet their needs.

3 Leverage the trade facilitation measures

Another benefit of USMCA is that it simplifies and modernizes the trade facilitation measures, such as customs procedures, certification processes, and dispute resolution mechanisms. These measures can help you reduce the time and money spent on clearing the borders, complying with the regulations, and resolving any issues or disputes. For example, USMCA allows you to submit your customs information electronically, use a single window system for multiple agencies, and access an online portal for tariff and origin inquiries. You should familiarize yourself with the trade facilitation measures and use them to streamline your import/export operations and enhance your competitiveness.

4 Stay updated and informed

USMCA is a dynamic and evolving trade agreement that will be reviewed and updated every six years. This means that there may be changes or additions to the rules and provisions that affect your import/export operations. You should stay updated and informed about the latest developments and news related to USMCA, and monitor the impact of the changes on your business. You should also seek professional advice and guidance from experts and authorities on how to comply with the USMCA requirements and how to optimize your trade strategies.

5 Build relationships and networks

Finally, USMCA is not only a trade agreement, but also a platform for cooperation and collaboration among the three countries. It aims to foster a strong and integrated North American economy that can compete and innovate in the global market. You should take advantage of the opportunities to build relationships and networks with your counterparts and stakeholders in the USMCA region, and to share your experiences and best practices. You should also participate in the trade promotion and support programs and initiatives that are available to help you grow your business and access new markets.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?