Provided below are details regarding the recently negotiated changes for Chapter 3 within the new NAFTA (USMCA) Free Trade Agreement pertaining to Agriculture.
Once the new agreement is in effect, the current NAFTA certificate will no longer apply to imported goods and all products covered under the current NAFTA will have to be re-qualified under the new agreement Rules of Origin. To learn more about the changes from NAFTA to USMCA, visit USMCA: Creating More Balanced and Reciprocal North American Trade.
1. Implementing Bill
a. Exemption from Special Agricultural Safeguard Measures
Section 202 of the bill amends section 405 of the Uruguay Round Agreements Act (19 U.S.C. 3602). The amendment will provide for exemption from any duty imposed under the special agricultural safeguard authority for goods from Canada or Mexico that qualify for preferential treatment under the USMCA. This amendment is necessary to comply with Article 3.9 of the USMCA.
2. Administrative Action Article
3.7 (Committee on Agricultural Trade) establishes an inter-governmental Committee on Agricultural Trade (“Agriculture Committee”) composed of government representatives of each Party. As under NAFTA, an official in USTR’s Office of Agricultural Affairs will serve as the U.S. representative to the Agriculture Committee.
Article 3.13 (Contact Points) provides that each Party shall designate and notify a contact point for sharing of information on matters related to agricultural biotechnology. An official in USTR’s Office of Agricultural Affairs will serve as the contact point for the United States.
Article 3.16 (Working Group for Cooperation on Agricultural Biotechnology) establishes an inter-governmental working group for information exchange and cooperation on policy and trade-related matters associated with products of agricultural biotechnology. An official in USTR’s Office of Agricultural Affairs will serve as a co-chair of the Working Group.
Article 3.A.2 (Tariff Rate Quota Administration) provides that Canada and the United States shall designate and notify a contact point to facilitate communications between the two countries on matters relating to the administration of its tariff-rate quotas. An official in USTR’s Office of Agricultural Affairs will serve as the contact point.
Paragraph 10 of Annex 3-B (Agricultural Trade Between Mexico and the United States) establishes an inter-governmental technical working group between Mexico and the United States to review matters related to agricultural grade and quality standards, technical specifications, and other standards in Mexico and the United States and their application and implementation insofar as they affect trade between the two countries. An official in USTR’s Office of Agricultural Affairs will serve as a co-chair of the technical working group.
Source: Office of the United States Trade Representative