While the U.S. trade war with China has the ability to suck all the air out of a room, apparel, textile and footwear sourcing executives would be wise to keep the status of the U.S.-Mexico-Canada Agreement (USMCA) on their radar.
The approval of USMCA, the agreement set to replace NAFTA, is becoming more likely each day, and with it will come new rules and classifications for the free trade agreement. Sourcing Journal publisher Caletha Crawford spoke with Suzanne Richer, director of the Trade Advisory Practice for E2Open, to get a handle on:
- How USMCA is different from NAFTA
- What to expect when it comes to rules of origin
- How this could impact “Made in the USA” for fibers, yarns and fabrics
- Which qualifications might see tightening
- The risks associated with mis-qualifying goods
- How to take some of the work out of classifying and qualifying goods
- What this could mean for the Kissell Amendment
- The buried line items you should be aware of
The USMCA has been embraced by Mexico, Richer noted, which has already ratified the free trade agreement. Canada is anticipated to ratify it in September, she said, and signs point to the United States completing it this year. It’s received support from such industry trade organizations as the American Apparel & Footwear Association.
E2Open is a provider of supply chain and logistics solutions. It acquired Amber Road, a provider of global trade-management software, earlier this year.
Listen to the podcast to learn the next steps your company needs to take in order to remain well positioned to navigate this trilateral trade update.