Immediately before the G-20 Summit Meeting on November 30, 2018 in Buenos Aires, President Trump, Canadian Prime Minister Trudeau, and Mexican President Nieto ceremonially signed the new United States-Mexico-Canada Agreement (USMCA). Although each leader signed the Agreement, this does not mean that it will go into effect, as the Agreement must now be approved by the legislature of each country. In regard to the U.S. legislative process, the next steps will be a 60 day period to submit a list of changes to U.S. law that are required for the Agreement to take effect. At the same time, the Agreement must also be reviewed by the U.S. International Trade Commission to assess the impact the agreement will have on GDP, exports and imports, employment, and U.S. consumer interests. The Commission has 105 days after the signing, or until March 15, 2019, to deliver its report to Congress.

Despite moving forward with the signature of the trade agreement, the U.S. continues to have steel and aluminum tariffs on imports from Canada and Mexico pursuant to Section 232 of the Trade Expansion Act of 1962. Prime Minister Trudeau optimistically indicated that Canada and the U.S. will work towards removing these tariffs in the near future.

We will continue to monitor this situation. For more information, please contact Robert Stang,  Jeffrey NeeleyBeau Jackson, or Nithya Nagarajan.

Late on September 30, 2018, the United States and Canada reached a new trade agreement (the USMCA) that addresses many of the contentious issues that delayed Canada from rejoining the countries’ trilateral trade agreement (NAFTA).

In a joint statement, Canadian Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer said that the new agreement “will give our workers, farmers, ranchers, and business a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.” Continue Reading United States-Mexico-Canada Agreement (“USMCA”), the NAFTA Replacement

North America MapAfter President Trump announced steel and aluminum tariffs on several of the country’s allies in March 2018, a number of EU countries, Mexico, and Canada immediately announced retaliatory tariffs against American products. Other trade partners and allies have also made plans to seek remedies through the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). With the impending widespread business impact of these retaliatory actions, companies should look closely at their supply chain to determine risk management considerations.

To elaborate on these recent changes, Husch Blackwell is pleased to team up with The Knowledge Group to offer complimentary passes to the first 30 registrants for a timely upcoming webinar: “Retaliatory Actions Against Trump’s Tariffs: What Businesses Should Do When Allies Hit Back.”

The webinar will provide insights on Trump’s tariffs, industry reactions, risk mitigation strategies and an outlook on what lies ahead. The program will take place on Tuesday, September 11, 2018 from 1:00 p.m.- 2:00 p.m. (ET) The webinar is led by Husch Blackwell Partner, Nithya Nagarajan and John Peterson, Partner at Neville Peterson LLP.

Register here.

Commerce Secretary Wilbur Ross announced on Thursday, May 31st that a 25 percent tariff on steel and a 10 percent tariff on aluminum will go into effect at midnight on May 31 on imports from Canada, Mexico, and the European Union. Those countries had previously been granted temporary exemptions from the initial tariffs announced in March as a result of investigations under Section 232 of the Trade Expansion Act of 1962. According to Secretary Ross, while discussions with the European Union were ongoing, the progress did not warrant another temporary exemption. Additionally, this announcement comes in the middle of the North American Free Trade Agreement (“NAFTA”) re-negotiations with Canada and Mexico. Ross stated that those talks have taken longer than expected and there is no precise end date in sight. Continue Reading Tariffs to Be Imposed on Imported Steel and Aluminum from the EU, Canada, and Mexico

North America MapOn Wednesday, August 16, Canada, Mexico, and the U.S. began the opening round of renegotiations to NAFTA in Washington, D.C. The opening round lasted through Sunday and was largely closed-door; however, the U.S. put forth its objectives for the negotiations last month. The three top negotiators, U.S. Trade Representative Robert Lighthizer, Canadian Foreign Minister Chrystia Freeland, and Mexican Economy Secretary Ildefonso Guajardo, began the day with opening statements. Continue Reading NAFTA Renegotiations Kick Off