Real-Life Communication
To make trade across borders easier and more efficient, the Canadian,
American, and Mexican governments came together to create the United States-Mexico-Canada
Agreement (USMCA).
Of course, the agreement brought in pages of new
regulations and conditions that had to be met for various products. "Basically
with free trade, we just need to know more information," says Tamra Johnson,
a customs broker.
"Everything we do involves reading and writing,"
says customs broker Betty Victory. "We read about new regulations, we clear
shipments, look at invoices and classify items for tariffs."
You are
training a new broker at your firm. You must explain customs regulations to
him. "There are different conditions for dairy products under the USMCA,"
you say.
"What's that?" he asks.
Oh, boy! He has a lot to learn.
You begin by giving your apprentice a brief overview of the USMCA. What you
tell him is printed below. Make sure you answer any questions he may have.
The
United States-Mexico-Canada Agreement, also known as the USMCA, is a free
trade deal between the three nations. The agreement was signed on Nov. 30,
2018 and came into effect on July 1, 2020. The USMCA replaced the North American
Free Trade Agreement (NAFTA), which had been around since January 1994.
The
USMCA aimed to eliminate trade barriers and promote economic growth in member
nations. Some of its key provisions relate to the dairy and automobile industries
as well as intellectual property protection.
The USMCA will expire after
16 years unless it is renewed.
Apprentice's questions:
- When did the USMCA take effect?
- What are the objectives of the USMCA?
- When does the USMCA expire?