After the US and Canada signed a last-minute trade agreement, in coordination with Mexico to create a new North American Free Trade Agreement to be renamed as the United States-Mexico-Canada Agreement (USMCA), cargo owners in North America have breathed a sigh of relief. The agreement-in-principle means that Canada will escape potentially devastating national security tariffs on car part imports that had been threatened by US President Donald Trump.
Threats by the US President to tear up the 20-year-old NAFTA deal had raised concerns among cargo owners and their logistics representatives that the region’s supply chains would have to be completely redesigned, although their fears had been partly allayed last month when the US and Mexico reached a preliminary new trade deal.
The US National Retail Federation applauded the US, Canada and Mexico for reaching the new trilateral trade agreement that updates NAFTA, with the association’s CEO Mr Matthew Shay commenting, “We are pleased a deal has been reached that preserves NAFTA’s trilateral framework which is critical to protecting North American supply chains that support millions of American jobs.
Source : eximin