three cargo containers stacked atop each other with us, Canadian, and Mexican flags
USMCA Overview
U.S. Mexico Canada Agreement (USMCA) went into effect in July 2020, replacing NAFTA.

USMCA Overview

The United States-Mexico-Canada Agreement (USMCA)

The United States, Mexico, and Canada updated NAFTA to create the new USMCA. The USMCA is mutually beneficial for North American workers, farmers, ranchers, and businesses. The new agreement, which entered into force on July 1, 2020, creates a more balanced environment for trade, support high-paying jobs for Americans, and grow the North American economy.  

Two-way trade in goods and services between the United States and Mexico totaled USD 863.4 billion in 2022, positioning Mexico as the second-largest overall U.S. trading partner. During this period, U.S. exports to Mexico totaled USD 362.7 billion, and imports from Mexico totaled USD 500.7 billion (a deficit of USD 138 billion). This large volume of trade directly and indirectly supports millions of U.S. jobs. Mexico is the first, second, or third-largest destination for merchandise exports from over 30 U.S. states. Top U.S. goods exports include electronics, vehicles, fuels, minerals, plastics, and machinery. Mexico was the second-largest export market for U.S. agricultural products in 2022, with total U.S. agricultural exports to Mexico valued at over USD 28 billion.

USMCA vs NAFTA

Learn about issues addressed in the USMCA agreement.  

Tariffs  

All products that have zero tariffs under NAFTA will remain at zero under USMCA. Canada will provide new and expanded access (via Tariff Rate Quotas) for U.S. exports of several dairy categories.  

For additional information on tariffs, including USMCA and applied tariffs, visit the FTA Tariff Tool and the FTA Resources Toolbox on our FTA Help Center. To learn more about harmonized system codes, visit our Understanding H.S. Codes page.

Rules of Origin

USMCA includes strong rules of origin for industrial products that will increase regional content and help preserve North American manufacturing, including new rules for autos and auto parts, chemicals, and steel-intensive products. These rules will help ensure that only producers who use sufficient amounts of U.S. or North American parts or materials receive preferential tariff benefits.

To ensure you are familiar with the rule of origin for your product, please visit USMCA’s Rules of Origin Chapter.  

De Minimis Threshold to Determine Origin of a Good

USMCA increases the de minimis threshold for purposes of origin from 7 percent to 10 percent, with certain exceptions for textile and apparel goods. For more information, visit Article 4.12 of the USMCA Rules of Origin Chapter.  

To learn more about FTA rules of origin and resources, visit our Identify and Apply Rules of Origin page on the FTA Help Center.

Uniform Regulations, General Note, and Implementation Instructions

The Implementing Instructions provide guidance on the new requirements under the USMCA, including information on claiming USMCA preferential treatment for goods and additional details on the USMCA entry, compliance, and other requirements.

Claiming/Documenting Origin

Once you have determined that your product qualifies for USMCA, you need to declare the product qualifies for preferential tariff treatment.

Declaring origin of the good, the USMCA no longer requires a certificate of origin. Rather, a minimum set of data elements must be submitted to prove origin. These elements may be on an invoice or any other document, except a commercial document issued by a non-party, in accordance with the Uniform Regulations.    

Learn how to make a claim for preferential tariff treatment and about the nine elements required at a minimum to claim origin under USMCA.  

U.S. Customs and Border Protection has updated its suggested USMCA Certification of Origin template.

Certification is not required for importations valued at $2,500 or less, provided that the importation does not form part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of evading U.S. laws, regulations, or procedures governing claims for preferential tariff treatment.  

Record-keeping requirements still need to be met.

Resources