Special Report: The USMCA, Updates & Upshots
- Keywords:
- usmca
- u.s. economy
- canadian trade
On November 30, 2018, the leaders of the three North American countries signed the U.S.-Mexico-Canada Agreement (USMCA). So far, only Mexico has ratified the trade deal. To mark the upcoming one-year anniversary of the signing, we prepared this report, Making it Together: USMCA and U.S. Trade. It provides an update on deal-related developments and discusses the importance of trade with Canada for the U.S. economy.
Since last autumn, escalating U.S./China trade tensions, increasing risk surrounding U.S. and foreign trade policies, along with the consequences of these tensions and uncertainties for the U.S. and global economies, have pushed the USMCA to the backburner. But it’s against these developments that unencumbered access to North American markets becomes even more attractive for U.S. businesses. Total U.S. trade with Canada and Mexico, i.e., combined U.S. exports and U.S. imports of goods and services, was $1.4 trillion in the year ending June, with Canada alone at more than $720 billion, the most for any single country. This means about $2 billion of goods and services crosses the U.S.-Canada border every day. The USMCA should allow this to continue, and increase further.
View important Disclosure Statements at economics.bmo.com/en/disclosure
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Michael Gregory, CFA
Deputy Chief Economist & Managing Director
Michael is part of the team responsible for forecasting and analyzing the North American economy and financial markets. He has spent his career working in either ec…(..)
View Full Profile >On November 30, 2018, the leaders of the three North American countries signed the U.S.-Mexico-Canada Agreement (USMCA). So far, only Mexico has ratified the trade deal. To mark the upcoming one-year anniversary of the signing, we prepared this report, Making it Together: USMCA and U.S. Trade. It provides an update on deal-related developments and discusses the importance of trade with Canada for the U.S. economy.
Since last autumn, escalating U.S./China trade tensions, increasing risk surrounding U.S. and foreign trade policies, along with the consequences of these tensions and uncertainties for the U.S. and global economies, have pushed the USMCA to the backburner. But it’s against these developments that unencumbered access to North American markets becomes even more attractive for U.S. businesses. Total U.S. trade with Canada and Mexico, i.e., combined U.S. exports and U.S. imports of goods and services, was $1.4 trillion in the year ending June, with Canada alone at more than $720 billion, the most for any single country. This means about $2 billion of goods and services crosses the U.S.-Canada border every day. The USMCA should allow this to continue, and increase further.
View important Disclosure Statements at economics.bmo.com/en/disclosure.
This is part 1
of a
6-part series on
The economic and regulatory landscape facing U.S. businesses wanting to expand into Canada
PART 2
Special Report: The Importance of Canadian Trade
Michael Gregory, CFA | September 29, 2019 Doing Business In Canada
America is running a record $900 billion deficit in goods trade. China accounts for the largest share of the shortfall at 44.6%, followed by Mexico&r…
PART 3
Discover Efficiencies with Expansion into Canada
Oscar Johnson | November 06, 2019 Doing Business In Canada, Manage Cash Flow
We’ve worked with many U.S. businesses that have expanded into Canada, so we’ve seen firsthand the difficulties that crop up when it come…
PART 4
With or Without USMCA, Canada Can Open Doors for US Companies
David Jacobson | November 13, 2019 Doing Business In Canada
There is great debate in Washington about whether Congress will ratify the United States-Mexico-Canada Agreement (USMCA) before year’s end. I h…
PART 5
Making It in Canada: Opportunities and Risks for Manufacturers
Ray Whitacre | November 19, 2019 Doing Business In Canada, Manufacturing
For U.S.-based manufacturing companies looking to expand into international markets, Canada represents a logical entry point. From the nature of its …
PART 6
Looking to Expand into Canada? Tips from our Cross Border Experts
November 04, 2019 Doing Business In Canada
Our cross border campaign, Expertise in Action, offers tips and insights for U.S.-based companies that are looking to expand their businesses no…
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