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Highlights of the USMCA deal

Christina Trocco

January 30, 2020

Highlights of the USMCA deal

Did you hear about the new USMCA?

President Trump recently signed legislation to implement a revamped version of the U.S.-Mexico-Canada Agreement (USMCA) that was originally drafted in 2018.

Key highlights of the deal 

Below are a few key highlights of this new deal.

  • Stronger protection and enforcement of intellectual property (IP) rights
  • Prohibits tariffs on digital products and allows data to flow freely across borders
  • US farmers will gain increased access to the Canadian dairy market
  • 75% of a car must be manufactured within North America, so fewer parts will be imported cheaply from other countries like China

New de minimis values 

For Canada

  • The new tax de minimis value will go up to 40 CAD (previously 20 CAD).
  • The new duty de minimis value will go up to 150 CAD (previously 20 CAD).

For Mexico

  • The tax de minimis value will stay the same at 50 USD.
  • The duty de minimis value will go up to 117 USD (previously 50 USD).

De minimis for postal shipments

The new de minimis values will not apply to postal shipments, which will remain unchanged at the de minimis values of 20 CAD for duty and tax in Canada and 50 USD for duty and tax in Mexico.

Why this will benefit ecommerce 

An increase in de minimis values means fewer ecommerce orders will be charged duties and taxes, and will positively impact conversion for orders imported into Canada and Mexico.

Learn more

Read the USMCA deal's fact sheet in detail.

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