USMCA

The USMCA has been ratified by the US and Mexico, but not yet Canada

The president and CEO of Associated Equipment Distributors (AED), Brian McGuire, testified before the Canadian House of Commons’ Standing Committee on International Trade about the importance of legislation to ratify the Canada-United States-Mexico Agreement. 

The agreement between the United States of America, the United Mexican States, and Canada (USMCA) is a free trade agreement between Canada, Mexico and the US that has been ratified by each country except Canada.

The agreement is the result of a 2017–2018 renegotiation of the North American Free Trade Agreement (NAFTA) by its member states, which informally agreed to the terms on September 30, 2018, and formally on October 1. 

The USMCA was proposed by President Trump and was signed by him, Mexican President Enrique Peña Nieto, and Canadian Prime Minister Justin Trudeau on November 30, 2018 as a side event of the 2018 G20 Summit in Buenos Aires. After the signing, the agreement moved to the legislatures of each nation for ratification.

Appearing via teleconference on February 26 from AED headquarters in Illinois, US, McGuire discussed the importance of North American trade certainty. He said, “By modernising and strengthening the trade ties between the three countries, [USMCA] will help restore predictability and trade certainty to North American equipment markets, creating an environment for greater investment, well-paying jobs and sustained growth.”

Highlighting the impact of disruptions to international trade on the industry, McGuire commented, “Efficient delivery of heavy equipment, machinery parts and services helps keep costs low for farmers, road builders, contractors and provincial and local governments, across the country. Delays in product delivery create inefficiencies that postpone major infrastructure projects that benefit Canadian citizens and commerce.”

On January 29, President Trump, surrounded by supporting stakeholders and public officials including McGuire, signed the United States-Canada-Mexico Agreement (USMCA).

Following the White House signing ceremony, McGuire said, “USMCA is a win for the equipment industry, its customers, including contractors and farmers and its manufacturers. I urge the Canadian Parliament and Senate to support its swift ratification.”

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