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Reciprocity was a free trade agreement between the United States and Canada. It mutually reduced import duties and protective tariffs on certain goods exchanged between the two countries. However, it was suspended in 1948 after both countries signed the General Agreement on Tariffs and Trade (GATT) and was superseded in 1994 by the North American Free Trade Agreement (NAFTA) between Canada, the US and Mexico. On November 30, 2018, President Trump and the leaders of Canada and Mexico signed the United States-Mexico-Canada Agreement (USMCA). The USMCA revised and modernized the North American Free Trade Agreement (NAFTA).
Scope
The standard applies to a vehicle or combination of vehicles that transport cargo on a highway and that exceed a registered gross vehicle weight of 4,500 kilograms. The standard also applies when an intermodal container is used to transport cargo.
Regulatory citations
- None
Key definitions
- USMCA - United States-Mexico-Canada Agreement
Summary of requirements
Exception. Reciprocity does not always apply. Differences do exist and additional training may be needed. If a dangerous good is regulated in Canada, but not in the United States, it must be shipped according to the TDG Clear Language Regulations. Likewise, if a hazardous material is regulated in the United States, but not in Canada, it must be shipped according to 49 CFR.
The United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020, is a comprehensive trade agreement between the U.S., Mexico, and Canada.
Here are some key requirements and highlights:
Rules of Origin:
Stricter rules for automobiles, requiring 75% of vehicle components to be manufactured in North America to qualify for zero tariffs
Specific labor value content rules, mandating that 40-45% of automobile content be made by workers earning at least $16 per hour
Labor and Environmental Standards:
- Enhanced labor rights, including the right to collective bargaining and improved working conditions
- Stronger environmental protections and commitments to enforce environmental laws
Intellectual Property:
- Extended copyright terms and stronger protections for patents and trademarks
- New provisions for digital trade, including data protection and cross-border data flows
Agriculture:
- Increased market access for U.S. dairy, poultry, and egg products into Canada
- Elimination of certain tariffs and quotas on agricultural products
Dispute Resolution:
- Mechanisms to resolve trade disputes, including state-to-state dispute settlement procedures
Certification of Origin:
- No specific certificate of origin form required, but a claim for preferential treatment must include nine minimum data elements as outlined in Annex 5-A
Highlights:
- Digital Trade: New rules to support digital trade and protect intellectual property rights
- Small and Medium-Sized Enterprises (SMEs): A dedicated chapter to ensure SMEs benefit from the agreement
- Anticorruption: Provisions to combat corruption and promote good regulatory practices
The USMCA aims to create a more balanced and reciprocal trade environment, supporting high-paying jobs and fostering economic growth across North America