13 Mar 2020

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Canadian Parliament Passes Legislation to Implement the CUSMA

On Friday 13th March 2020, the Canadian Parliament passed Bill C-100, granting royal assent to “An Act to implement the Agreement between Canada, the United States of America and the United Mexican States” (the “CUSMA Implementation Act”). The legislative process was completed on a highly expedited basis, much earlier than expected, before Canada’s Parliament adjourned itself for a five-week period (until 20th April) in response to the COVID-19 coronavirus pandemic.

With the passage of the CUSMA Implementation Act into law, Canada has paved the way for the new North American free trade agreement to enter into force.

Under paragraph 2 of the Protocol replacing the NAFTA with the CUSMA, Canada, (i) Mexico, and the United States must notify each other, in writing, when they have completed their internal implementation procedures, and (ii) the new agreement shall enter into force (and the NAFTA shall be terminated) on the first day of the third month following the last written notification. Assuming that Canada tenders its notification by the end of March, the CUSMA could enter into force as early as 1st June 2020.

Tereposky & DeRose regularly provides advice on the interpretation, application, and implementation of international agreements. Should you have any questions regarding this matter, we are at your disposal.

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

Greg Tereposky
613.237.1210
gtereposky@tradeisds.com

Canadian Parliament Passes Legislation to Implement the CUSMA (13 March 2020)