After more than a year of tense negotiations, earlier this week, the United States, Canada and Mexico unveiled an updated trade agreement to replace the North American Free Trade Agreement (NAFTA). The new accord, which will be called the United States-Mexico-Canada Agreement (USMCA), must now be signed by all parties (expected before Dec. 1) and then ratified within each country, a process that could take months or even years. Meanwhile, NAFTA will remain in effect until it is either replaced by USMCA or the United States, Mexico or Canada unilaterally withdraw.
Significantly, the USMCA is silent regarding the United States’ existing Section 232 tariffs on aluminum and steel from Canada and Mexico.
“AED welcomes the announcement that a new trade agreement has been reached and it includes two key U.S. allies – Canada and Mexico,” said AED’s President and CEO Brian P. McGuire. “We now encourage the administration to build on this momentum and work diligently to come to a resolution with Canada and Mexico on steel tariffs, which are disrupting supply chains, increasing costs for equipment purchasers and exasperating shortages of new construction equipment to rebuild America.”
To view the final text of the agreement click here.
AED is reviewing the text and working with our partners to determine the agreement’s impact on the broader industry, including equipment manufacturers and your customers. Please provide your input and comments regarding the USMCA and it’s possible impact on equipment dealers to AED’s Vice President of Government Affairs Daniel B. Fisher.