June 29, 2020

Nicolas Guzman Speaks with The Canadian Press about Long-Term Impact of Upcoming USMCA

The Canadian Press turned to International Trade partner Nicolas Guzman for insight on the United States–Mexico–Canada Agreement (USMCA), which is scheduled to go in effect on July 1, 2020. In the article “Tough talk, tariff threats resurface as USMCA readies for Wednesday debut,” Canada’s national news agency highlighted the threat of Section 232 tariffs on Canadian steel and aluminum reemerging as an issue.

Guzman told The Canadian Press that the long-term predictability and stability that will accompany the new managed-trade regime vastly outweighs whatever hiccups and disagreements will occur in the early going, including any threats of tariffs.

“The administrations in all three countries took advantage of the USMCA rewrite to modernize the agreement and incorporate some efficiencies that are going to make trilateral trade a lot more efficient, a lot better,” Guzman said.

Aside from more U.S. dairy products in Canadian grocery stores and slightly higher postage costs for cross-border shipping, the average Canadian likely won’t see dramatic changes right away, Guzman added — although modestly higher prices for cars and trucks are a possibility, given the upheaval likely from the agreement’s new rules of origin and labour provisions.

This article also appeared in the National Post, Toronto Star and Calgary Sun, among others. 

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