Trade Agreements, Origin & Policy

USMCA

Also known as: United States-Mexico-Canada Agreement

The United States-Mexico-Canada Agreement is the regional free trade agreement governing trade among the three North American economies, providing duty-free or reduced-duty treatment for qualifying goods and setting rules on origin, labor, digital trade, and dispute settlement. It succeeded an earlier North American accord and tightened certain rules of origin, notably for automobiles, requiring higher regional content and specific labor-value thresholds to qualify. For traders across the region, USMCA origin certification and recordkeeping are the gateway to substantial tariff savings, and understanding its product-specific rules is essential to claiming them.

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Stricter rules of origin than NAFTA, particularly in automotive, with a less formal certification: importer, exporter or producer may certify and no prescribed form exists. Less paperwork is not less obligation — the importer still has to substantiate the claim.

Where it matters for compliance

  • Certification requires specified data elements but no particular format.
  • Records supporting the claim must be retained for five years.

Related terms