Revised NAFTA will not take effect on June 1, as Trump had hoped

April 1, 2020

CSCB will be following up with CBSA and Global Affairs Canada for additional details.

COVID-19 is one of several complications delaying the implementation of the revised North American trade agreement beyond June 1 — when the Trump administration wanted the new deal to take effect.

In order to proceed on the White House's preferred timeline, all three partners needed to notify each other by March 31 that they had finished their respective ratification processes and were ready to comply with the new agreement. 

The text of the Canada–U.S.–Mexico Agreement (CUSMA) says it will take effect on the first day of the third month after the final country gives this notice.

Canada rushed through a deal to pass its implementation legislation on March 13, as Parliament suspended amid fears that it was no longer safe for the full House of Commons and Senate to meet during the pandemic.

While that legislation was an important step toward making the necessary changes to laws and regulations, Canada's Parliament does not ratify trade treaties. That's up to the executive branch — the federal cabinet.

Although Justin Trudeau's ministers met on Tuesday morning, they have yet to give this notice they're ready to proceed...

This was excerpted from the 31 March 2020 edition of CBC News.


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Topic(s): 
Rules of Origin & Trade Agreements / CUSMA/USMCA
Information Source: 
Canadian News Channel
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