We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Industry groups welcome USMCA implementation

Industry groups welcome USMCA implementation

Retailers, logistics companies say the deal modernizes trade and creates a more competitive marketplace, but warn of compliance challenges in an uncertain economic climate.

USMCA
July 2, 2020
DC Velocity Staff
No Comments

Supply chain leaders praised this week’s implementation of the United States Mexico Canada Agreement (USMCA), saying it modernizes the Noth American trade framework and will create a more competitive marketplace.

Leaders from industry trade groups and logistics firms said the trade pact is vital to the economies of all three nations, but some cautioned that adapting to the new regulations may prove complicated as economies continue to deal with slowdowns related to the Covid-19 pandemic. USMCA, which updates and replaces the North American Free Trade Agreement (NAFTA), contains new provisions regarding zero-tariff requirements for how much of a product must be made or sourced in the region and also addresses e-commerce and the digital economy, labor, and environmental issues, among others.

“The U.S.-Mexico-Canada agreement will take time, cost, and complexity out of trade at a time when we need to be helping our economies rebound from the pandemic,” Laura Lane, president of UPS Global Public Affairs, said in a statement Thursday. “With provisions that open markets for small and medium sized businesses, spur the growth of e-commerce, and support additional jobs for workers in all three economies, the enactment of this pact is timely.”

Lane added: “This trilateral deal is particularly noteworthy given the modernizing provisions it includes that prohibit trade discrimination on the basis of gender and that safeguard cross-border data flows while also addressing new cybersecurity challenges.”

Brian Dodge, president of the Retail Industry Leaders Association (RILA) agrees.

“The new U.S.-Mexico-Canada Agreement strengthens two of our most important trading relationships and creates certainty for retailers to invest, plan for the future, create jobs, and provide consumers with the widest possible selection of affordable and quality products,” Dodge said in a statement Wednesday. “Never has that been more important than during the economic crisis brought on by the COVID-19 outbreak.”

Leaders from the chambers of commerce of all three countries also weighed in, supporting the deal but pointing to compliance challenges that may be complicated by the pandemic. 

“Overall, the agreement increases our region's competitiveness, which is vital in an uncertain international context characterized by protectionist temptations,” Thomas J. Donohue, CEO of the U.S. Chamber of Commerce, Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, and Carlos Salazar Lomelín, chairman of Mexico’s Consejo Coordinador Empresarial (Business Coordinating Council), said in a joint statement Wednesday. “The work does not stop now. There are challenges where flexibility will be needed. The auto industry—our region’s largest manufacturing sector—will have to comply with hundreds of pages of new regulations implementing strict content requirements. New rules in a number of other areas, such as labor, will also present compliance challenges. The Covid-19 pandemic and economic downturn may make adapting to these new rules even more challenging.”

USMCA went into force July 1.

Global Logistics Strategy
KEYWORDS RILA U.S. Chamber of Commerce UPS
  • Related Articles

    Dachser Announces Robert Erni Will Become CFO

    IFS study: 70 percent of businesses increase or maintain digital transformation spend amid pandemic

    Cloud Computing - Why It’s Time To Shift Your Business To The Cloud

Recent Articles by DC Velocity Staff

EnerSys opens expanded DC

Remembering Art Rice, media exec known for his big heart and ability to see the best in everyone

Retailers offer special returns policies to their best customers, Narvar study finds

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing