On January 1, 1994, the United States, Mexico, and Canada signed the North American Free Trade Agreement, commonly known as NAFTA. While free trade existed between the countries prior to the agreement, NAFTA expanded the opportunities for trade among the nations and made the countries the largest free market in the world.
NAFTA ensured tariff elimination for certain products that qualified, opened the border and interior of Mexico to truckers from the United States and streamlined border processes and licensing requirements. It also broadened free trade in the agricultural sector, while providing increased investment opportunities for businesses, to name a few.
Fast forward to 2018, where NAFTA was replaced with the United States/Mexico/Canada Agreement, or USMCA (if you're located in the US). It goes by Canada–United States–Mexico Agreement (CUSMA) in Canada, and Tratado entre México, Estados Unidos y Canadá (T-MEC) in Mexico. But in addition to the name change, the agreement has ushered in a new set of rules and regulations that shippers need to be aware of when importing/exporting to/from this trio of nations.
In our latest episode of Talking Trade, I discuss the new era of NAFTA 2.0 with BDP's Vice President of Government and Industry Affairs, Michael Ford, including key points and factors that shippers should keep in mind. For the full breakdown, check out Talking Trade: NAFTA 2.0, below.