GlossaryEN1 min readUpdated: Jun 26, 2026
USMCA United States–Mexico–Canada Agreement
When goods cross any border between the United States, Mexico, and Canada, the USMCA – United States–Mexico–Canada Agreement – sets the terms of trade.
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Source: https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement
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Passar Hub: Everything on the new Swiss customs system
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Definition & Explanation
When goods cross any border between the United States, Mexico, and Canada, the USMCA – United States–Mexico–Canada Agreement – sets the terms of trade. It entered into force in 2020, replacing NAFTA, and establishes tariff rates, rules of origin, and customs procedures for intraregional commerce. Goods that meet origin requirements generally enter duty-free; without a valid origin certification, standard most-favoured-nation rates apply. Beyond customs matters, the USMCA covers labour standards, environmental obligations, and digital trade—a significantly broader scope than its predecessor. Unlike bilateral free trade agreements, the USMCA binds all three countries simultaneously under a single, unified framework.
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