United States-Mexico-Canada Agreement (USMCA) (formerly NAFTA)

Scope

The USMCA replaced NAFTA as of July 1, 2020, and applies to carriers in the U.S. who deal with foreign trade and transportation.

Regulatory citations

• None

Key definitions

• NAFTA: The North American Free Trade Agreement was created to remove trade barriers between Canada, Mexico, and the United States by eliminating tariffs and other barriers to the free flow of goods and services across borders.

Summary of requirements

NAFTA was approved by Congress in 1993 and entered into force in 1994, creating one of the largest free trade areas in the world. Provisions in the Agreement included a timetable for opening the borders to cross-border motor carriage of international cargo and passengers, which were to be phased in over a period of years. The USMCA replaced NAFTA as of July 1, 2020.

Key provisions. The USMCA, composed of 34 chapters and 12 side letters, retains most of NAFTA’s chapters, making notable changes to market access provisions for autos and agriculture products, to rules such as investment, government procurement, and intellectual property rights (IPR), and to labor and the environment. New issues, such as digital trade, state-owned enterprises, and currency misalignment are also addressed.

Further information. More information about foreign-based carrier operation in the United States is available online at https://www.fmcsa.dot.gov/international-programs.

U.S. carriers interested in operating in Mexico should contact the Mexican Secretaria de Comunicaciones y Transportes (SCT), Mexico’s federal department of transportation (the person calling should speak Spanish):

Secretaría de Comunicaciones y Transportes (SCT) Calzada de las Bombas No. 411 Colonia San Bartolo Coapa México, DF. 04920

Mexico Tel: 011-5255-5684-0757, 011-5255-5684-0638 and 011-5255-5677-3561 x3187 x3201

https://www.gob.mx/t-mec/acciones-y-programas/textos-finales-del-tratado-entre-mexico-estados-unidos-y-canada-t-mec-202730?state=published

The SCT is responsible for transportation and communications legislation enforcement, operating authority, driver and vehicle safety, Federal highways, and oversight of the movement of hazardous materials and wastes.