A number of activities in a number of areas from this week to report.

First, on the USMCA, CBP launched the U.S.-Mexico-Canada Center staffed with experts from operational, legal, and audit disciplines, as well as with virtual representatives from Canadian and Mexican customs authorities. The Center will be the cornerstone of CBP’s USMCA implementation plan and will serve as a central communication hub for CBP and the private sector community, including traders, brokers, freight forwarders and producers, ensuring a smooth and efficient transition from the North American Free Trade Agreement to USMCA.

Also, this week the Mexican Government released its plan for the opening of economic activities. The initial plan, which came out on Thursday, showed three stages for “opening.” The second stage, which would include the transportation industry (autos plus), would be able to operate as of May 18 – a date that had been previously reported in the three countries. However, then on Friday, the plan was amended indicating that the transportation industry would be “preparing” for opening from May 18 to May 31 and would fully open on June 1 (see a summary here).

As with the U.S. and Canada, Mexico has, through the federal and state governments, created initiatives to assist with the economic issues created by COVID-19. A listing of all of those initiatives is available here.

As we have mentioned, the “webinar/webcast industry” has grown dramatically as we are moving by necessity into a more virtual communication mode. Two webinars (labeled Episode I and Episode II) have been held in the past two weeks by the law firm of Dickinson Wright, which over the past two years has provided many analyses of the NAFTA 2 renegotiations as they have moved forward. The presentations in these last two webinars have focused on the areas and Chapters of the USMCA that have received much focus moving toward implementation – in particular the auto Rules of Origin and Labor Enforcement. There is much detail in these presentations, but a few points can be made:

Implementation of the auto ROO will likely be delayed until January 1.
The final implementing instructions from CBP may not be out until July 15.
There is a lot of data required for determining RVC and LVC for autos and auto parts.
The labor rules will be completed by June 30, but there likely will be a handful of complaints filed under the USMCA’s rapid-response labor enforcement mechanism soon after the pact enters into force.
This is not the time to be reducing your compliance staff; it’s time “to get ready.”
NAFTA Certs. will not be accepted by CBP following July 1; time between now and then should be spent reviewing the requirements of the new certification “spreadsheets” including data required; thoroughly vet your suppliers and know who the producers, importers and exporters of products in question are.
Although CBP has issued over 700 rulings regarding imports during the NAFTA timeframe, they may not be applicable in the USMCA environment.

Obviously, more information will come in the next 6 weeks as July 1 approaches. Look at our website, www.usmcocma.org, for materials on COVID-19 and trade and investment with Mexico.