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U.S. Trade Representative Robert Lighthizer on Friday said he has notified Congress that the new U.S.-Mexico-Canada trade agreement will take effect on July 1, a month later than initially proposed.
In a statement, Lighthizer said both Mexico and Canada had taken measures necessary to comply with their commitments under the U.S.-Mexico-Canada Agreement (USMCA), which replaces the 26-year-old North American Free Trade Agreement (NAFTA).
Some industries, including automakers, had been arguing for a delayed implementation because of the difficulties they are facing from the coronavirus pandemic.
Mexico had asked the United States and Canada for a longer transition period for the auto industry to certify that it was meeting new, more stringent North American content rules.
Lighthizer said his office would work to ensure a smooth implementation of the new trade rules.
"The crisis and recovery from the COVID-19 pandemic demonstrates that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America," Lighthizer said in a statement. "The USMCA's entry into force is a landmark achievement in that effort."
The accord includes tougher rules on labor and automotive content but leaves 1.2 trillion U.S. dollars in annual U.S.-Mexico-Canada trade flows largely unchanged. Trump had been a critic of NAFTA.
(Cover image: Rows of Toyota Motor Corp. vehicles sit lined up, waiting to be picked up by dealers at the Port of Long Beach in Long Beach, California, U.S., on December 21, 2012. /VCG)
(CGTN)
