The leaders of Canada, Mexico and the U.S. signed the United States-Mexico-Canada Agreement (USMCA) on November 30, 2018. USMCA, which enters into force on July 1, 2020, revises and modernizes the North American Free Trade Agreement (NAFTA), in place since 1994.
Import Tariffs: Canada eliminated tariffs on all industrial and most agricultural products imported from the United States on January 1, 1998, under the terms of the NAFTA.
USMCA maintains the NAFTA tariff exemptions or provides for new staged elimination of duties and barriers to trilateral trade in goods originating in the United States, Mexico, and Canada.
Tariffs and tariff-rate quotas (TRQs) remain in place on grain, dairy and poultry tariff lines. Under USMCA, however, Canada has increased market access for certain U.S. dairy products like milk and cheese. New TRQs, which will be phased in over a period of years, will allow more dairy imported to Canada at a lower within-access duty rate.
Import Requirements: The Canada Border Services Agency’s website lists the required documents for import. The most important document required from a U.S. exporter is a properly completed Canada Customs Invoice or its equivalent for all commercial shipments imported into Canada. The exporter can use its own form if the required information is provided. At the border, the importer or customs broker also submits Form B3, the customs coding form.
Customs Regulations: Certain goods may be prohibited or controlled, or require special permits, inspections, or conditions to be allowed into Canada. The Canada Border Services Agency (CBSA) provides a step-by-step guide to help importers determine whether their goods may be subject to special rules or conditions.
Export Controls: When NAFTA came into force, it eliminated many export controls to reduce barriers to trade between the United States, Canada and Mexico. USMCA maintains these flexibilities, allowing these countries to ship their goods all across North America without any fees or Electronic Export Information (EEIs).
Source: The International Trade Administration (ITA), U.S. Department of Commerce www.export.gov; https://www.cbsa-asfc.gc.ca/services/cusma-aceum/menu-eng.html