United States, Mexico, Canada Sign Updated Trade Agreement
Fulfilling a top priority of its trade agenda, the Trump administration announced last night that the United States, Mexico and Canada had successfully concluded negotiations on anupdated North American Free Trade Agreement (NAFTA), now known as the United States, Mexico, Canada Agreement (USMCA). Negotiations between the United States and Mexico concluded in August before outstanding issues with Canada were resolved last night after weeks of discussions.
NAFTA has been extremely beneficial for outdoor companies through the elimination of unnecessarily high and outdated import tariffs on outdoor apparel, footwear and equipment not made in the United States and creating valuable new export markets for domestic manufacturers.
Last year, Outdoor Industry Association (OIA) outlined its priorities for an updated NAFTAand urged the administration to do the following:
- Preserve reciprocal duty-free market access for outdoor apparel, footwear and equipment as a primary outcome.
- Include tough and enforceable labor and environmental provisions that match international standards in the core text of the agreement and that are subject to the same dispute settlement procedures as the commercial provisions.
The new pact will be signed by the end of November and will likely be voted on by Congress in 2019 under so-called “fast-track” rules — a set time for debate and then an up-or-down vote without amendment.
OIA will conduct a thorough analysis of the agreement and report back to its members about how the agreement comports with the industry’s priorities.