01What it covers
The successor to NAFTA. Stricter automotive rules of origin (75 % regional value content), labour standards in Mexico.
Free trade agreements like this reduce tariff barriers and set common standards for non-tariff topics (standards, public procurement, investment protection). For exporters this translates into lower duties, faster clearance and more predictable compliance — provided the rules of origin are met.
02Key benefits
- Duty-free trade within North America
- Uplifted RVC rules for vehicles
- Dispute settlement via panels
03Proof of origin and practice
USMCA Certificate of Origin (PDF form), no government-issued certificate required.
Note that rules of origin are defined product-specifically in the agreement's annexes — there is rarely a single percentage threshold. For complex goods with third-country inputs, document an origin calculation.
04Who benefits most?
The agreement pays off primarily for companies with recurring exports or imports between the parties and for products whose "normal" duty is ≥ 3–5 %. For electronic products already enjoying 0 % MFN duties, the benefit lies more in regulatory coherence than tariff elimination.
Frequently asked questions
When does a product qualify for preference?
Whenever it meets the product-specific rules of origin (e.g. wholly obtained, or sufficiently worked/processed). For third-country components, a value rule ("max. 40 % non-originating value") or a chapter-change rule typically applies.