Latin American Alert | December.03.2018
On November 30, 2018 the United States, Mexico, and Canada formally signed the new cross-border trading agreement known as the United States-Mexico-Canada Agreement (the "USMCA"), ending almost two years of economic uncertainty. As mentioned before in our Latin America Alert released August 29, 2018 "Mexico and U.S. are Back in Business", the USMCA is a revised version of the almost 25-year-old North America Free Trade Agreement and should unlock new opportunities in cross-border transactions between the U.S. and Mexico.
The following is a summary of some of its key terms:
This new treaty is still pending ratification of the national legislatures of each of the three countries and once approved will replace the existing trilateral North American Free Trade Agreement. Each country has a particular legislative process, hence timing will depend on how quickly any concerns raised by each legislature are resolved.