USMCA will take effect on July 1

USMCA will replace NAFTA.

US trade representative Robert Lighthizer said he had officially notified Congress that the new trade agreement between the United States, Canada, and Mexico (USMCA) will take effect on July 1 – a month later than planned.

Lighthizer’s statement indicated that Mexico and Canada have taken the necessary steps to meet their obligations under the USMCA, which will replace the 26-year-old North American free-trade agreement (NAFTA).

Some American business groups, including automakers, have called for postponing the USMCA’s entry into force, pointing to problems caused by the coronavirus pandemic. Mexico has asked the United States and Canada to grant automakers a longer transition period.

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