The final procedural steps for implementation of the United States-Mexico-Canada Agreement (USMCA) was on April 24, 2020, when U.S. Trade Representative Robert Lighthizer notified Congress that Canada and Mexico had taken measures necessary to comply with their commitments. That agreement, USMCA, enters into force on July 1, 2020. Following that notification to Congress, the United States became the third country to notify the other Parties that it had completed its domestic procedures to implement the agreement – the final step necessary for the USMCA to enter into force.
“The crisis and recovery from Covid-19 pandemic demonstrate that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America. The USMCA’s entry into force is a landmark achievement in that effort. Under President Trump’s leadership, United States Trade Representative (USTR) will continue working to ensure a smooth implementation of the USMCA so that American workers and businesses can enjoy the benefits of the new agreement,” said Ambassador Robert Lighthizer, United States Trade Representative.
There are plenty of layers and chapters to the negotiated USMCA Agreement; this could take you several google searches and plenty of human resources to get to the bottom of how this will benefit Service Disabled/Veteran Owned Businesses (SD/VOBs). National Veteran Business Development Council stands by its organizational word to provide access and opportunity to increase your exposure in the corporate marketplace.
We are offering you the “cliff-notes” to the USMCA and show you NVBDC Certification can benefit your international trade business with the advantage of reaching NVBDC Corporate Members.
Below are the chapter titles and key achievements of the agreement to help you understand the agreement’s main focus:
INTELLECTUAL PROPERTY
- Protections for United States Innovators and Creators
- Most comprehensive enforcement provisions of any trade agreement
- Strongest standards of protection for trade secrets of any prior FTA
DIGITAL TRADE
- Prohibit customs duties and other discriminatory measures on digital products
- Ensure data can be transferred cross-border limiting where data can be stored
- No Restrictions for supplier’s electronic authentication
- Guarantee enforceable consumer protections
- Limit governments’ ability to require disclosure of proprietary computer source code and algorithms
- Promote collaboration in tackling cyber-security challenges while seeking to promote industry best practices to keep networks and services secure
DE MINIMIS
(The de minimis threshold sets the value of goods below which no duties or taxes are collected by customs.)
- Facilitate greater cross-border trade
- Both Mexico and Canada raising their de minimis shipment value levels
- A significant outcome for small and medium-sized enterprises (SMEs) who lack resources to pay customs duties and taxes due to smaller trade volumes
- New traders will benefit from lower costs to reach consumers
CURRENCY
- High-Standard Policy and transparency commitments, with robust accountability mechanisms
- Macroeconomic Policies and Exchange Rate Matters with commitments on currency issues
- High-standard commitments to refrain from competitive devaluations and targeting exchange rates, and providing mechanisms for accountability
- An unprecedented context that will help reinforce macroeconomic and exchange rate stability
LABOR
- Ensure benefits to American workers
- Worker representation in collective bargaining
- Labor rights recognized by the International Labor Organization
- Enhanced labor enforceability
- New labor value content rule
ENVIRONMENT
- The most comprehensive set of enforceable environmental obligations
- Prohibitions on harmful fisheries subsidies especially vessels or operators involved in illegal, unreported and unregulated fishing
- New protections for marine species with a commitment to protect marine habitat
- Enhance the effectiveness of customs inspections of shipments containing wild fauna (animals) and flora (plant life) at ports of entry
- Adopt, maintain, and implement relevant obligations under seven multilateral environmental agreements (MEAs).
FINANCIAL SERVICES
- Core obligations to prevent discrimination against U.S. financial services suppliers
- First provision against local data storage requirements
- The most robust transparency obligations of any U.S. trade agreement, to ensure good regulatory practices in government licensing and other market access authorizations
- Expanded list of cross-border services, such as portfolio management, investment advice, and electronic payment services
- Specific procedures related to investor-State dispute settlement claims with Mexico
You can find the full fact sheet by clicking here: USMCA Fact Sheet
Understanding the agreement is half the battle; you can attempt this on your own, but National Veteran Business Development Council helps put you on the front line working with corporations that offer services, searching for suppliers and need products to infiltrate the international marketplace. Service-Disabled/Veteran Owned Businesses ask plenty of questions on how to get more involved with international trade. There is no better time than the present; with the new agreement in place and NVBDC Certification, the door is wide open. Our process is proven to work by connecting SD/VOBs with Supplier Diversity Professionals. NVBDC makes the connection; you have to do the leg work to succeed.
NVBDC Certified Service-Disabled / Veteran-Owned Businesses benefit from increased market exposure. We provide businesses the advantage of being among the first considered by Supplier Diversity Professionals for their diverse supply chain, the right match at the right time.
NVBDC provides you access and opportunities; it is up to you to do the rest. We encourage you to get NVBDC Certified to start the process.
If you are interested in learning more about this incredible opportunity, NVBDC has been authorized to provide you with our contact at Export-Import Bank of the United States.Export/Import Bank of the United States is an independent federal agency that fills gaps in private export finance in order to bolster U.S. job growth at no cost to American taxpayers. EXIM provides trade financing solutions- including export credit insurance, working capital guarantees, and guarantees of commercial loans to foreign buyers – to empower exporters of U.S. goods and services.
Please follow the links below to reach out with any questions or visit EXIM website:
Email: Michael K. Jackson, Business Development Specialist, EXIM
Website: Export-Import Bank of the United States
Vets helping Vets is the NVBDC motto. We increase exposure in the marketplace, help make business connections, have a robust corporate membership, and ultimately provide the ability to help grow your business.
Always call us with any questions on how to get started: (888)-CERTIFIED
