Skip to Content

Don’t underestimate USMCA changes

May 25, 2020 Article 4 min read
Lou Longo
With the July 1 USMCA implementation date nearing, many businesses are recognizing that they need to know more about the NAFTA replacement, particularly the compliance provisions. Lou Longo discusses the implications for U.S. companies via Automotive News.
Picture of capital buildingAs if the COVID-19 shutdown wasn’t enough of a seismic shock for U.S. companies, they’re facing another earthquake in less than two months when the USMCA trade deal with Mexico and Canada takes effect.

The good news about the replacement for NAFTA is that it finally gives us certainty around North American trade after more than three years spent hanging on the next round of talks or speculation. It’s a deal that will bring investment back to the region and provide some much-needed stability.

The bad news is that companies’ level of awareness about the deal and their preparedness for its implementation on July 1 is worryingly low. A surprising number of companies are thinking about the deal as “NAFTA 2.0,” little more than a spruced-up version of the old agreement.

Related Thinking

Electric vehicle charging stations.
January 31, 2024

2024 is the year to invest in a long-term EV strategy

Article 4 min read
Sparks flying in automotive factory.
January 19, 2024

How could rising labor costs affect the U.S. automotive industry?

Article 6 min read
Electrical vehicle being charged.
January 11, 2024

Automotive Insiders: Searching for answers amid industry upheaval

Podcast 12 min listen