Order Fixing the Date of Entry into Force of the Agreement between Canada, the United States of America and the United Mexican States as the Day on Which that Act Comes into Force: SI/2020-33

Canada Gazette, Part II, Volume 154, Number 9

Registration

SI/2020-33 April 29, 2020

CANADA–UNITED STATES–MEXICO AGREEMENT IMPLEMENTATION ACT

Order Fixing the Date of Entry into Force of the Agreement between Canada, the United States of America and the United Mexican States as the Day on Which that Act Comes into Force

P.C. 2020-215 April 3, 2020

Her Excellency the Governor General in Council, on the recommendation of the Deputy Prime Minister and Minister of Intergovernmental Affairs, pursuant to section 213 of the Canada—United States—Mexico Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2020, fixes the date of entry into force of the Agreement between Canada, the United States of America and the United Mexican States as the day on which that Act comes into force, other than section 21, subsection 114(1), section 115, subsection 118(1), sections 119, 121 to 126, 128, 130, 132 and 135, subsection 137(1) and sections 153 to 182.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

Order fixing the date of entry into force of the Canada–United States–Mexico Agreement Implementation Act (the “Act”) as the day on which the Protocol replacing the North American Free Trade Agreement with the Agreement between Canada, the United States of America, and the United Mexican States, done at Buenos Aires on November 30, 2018, and the Protocol of Amendment to the Agreement between Canada, the United States of America, and the United Mexican States, done at Mexico City on December 10, 2019 (together the “CUSMA”), along with related binding instruments (side letters) enter into force. Upon entry into force, the CUSMA will supersede the North American Free Trade Agreement (NAFTA).

Objective

Background

On November 30, 2018, Canada, the United States, and Mexico signed a protocol to replace the NAFTA with a new and modernized agreement. On December 10, 2019, Canada, the United States, and Mexico signed an amending protocol that modifies elements of the outcome related to state-to-state dispute settlement, environment, labour, intellectual property, and rules of origin. The final outcome preserves key elements of NAFTA, modernizes provisions to address 21st-century trade challenges, reduces red tape at the border, and provides enhanced predictability and stability for workers and businesses across the integrated North American market. Overall, the modernization of NAFTA marks an important milestone in Canada’s economic relationship with the United States and Mexico.

Both the initial and amending protocols were tabled in Parliament in line with the current Policy on Tabling of Treaties in Parliament. The Act — An Act to implement the Agreement between Canada, the United States of America and the United Mexican States — received royal assent on March 13, 2020. The Act specifies that it comes into force on a day fixed by order of the Governor in Council.

The CUSMA will enter into force following a period specific, as set out in the CUSMA, after the last notification from the signatories, in writing, of the completion of internal procedures to bring the agreement into force.

Implications

By bringing the Act into force, Canada is in conformity with its commitments made under the CUSMA. Part I of the Act approves the CUSMA and covers amendments necessary to participate in the implementation and operation of the agreement. For example, it allows the Minister designated under Act to appoint panellists for dispute settlement proceedings and impose remedies following the conclusion of a dispute, and it designates the Minister of Labour to act as Canada’s senior government representative on the Labour Council. It also allows for the Government to pay Canada’s share of expenses related to the administration of the agreement.

Part II of the Act amends 24 pieces of legislation in order to bring them into conformity with Canada’s obligations under the CUSMA. Many of the amendments are to update existing legislation that refers to the NAFTA with the applicable references under CUSMA. For example, the Criminal Code is amended to create offences related to trade secrets in order to implement an obligation in CUSMA that each Party shall criminalize the unauthorized and willful misappropriation of a trade secret. Other examples include amendments to the Export and Import Permits Act to implement the commitment in Chapter 3 (Agriculture) of CUSMA to monitor and administer export charges on the export of certain milk products and infant formula beyond a certain quantity, and amendments to the Customs Act to implement the obligation in Chapter 7 (Customs and Trade Facilitation) to assist the other Parties with duty evasion verifications.

Consultation

During the negotiation of the new NAFTA, the Government undertook public consultations beginning in February 2017, and held over 1 100 interactions with more than 1 300 Canadian stakeholders. The Government engaged with a broad group of stakeholders from all economic sectors, as well as traditionally under-represented groups, such as labour organizations, women, youth, Indigenous peoples, civil society organizations, and academics. The Government also received over 47 000 written submissions from Canadians.

In terms of views expressed, Canadian stakeholders have been largely supportive of the new agreement and have underlined the importance of securing stability and predictability in our commercial relationship with the United States.

In the dairy, poultry and egg sectors, some concern has been expressed about the outcomes, including export charges on certain milk products and new market access provided to the United States.

Overall, provinces and territories are supportive of the CUSMA, but some have raised the importance of transition support for the dairy, poultry and egg sectors.

Contact

For more information, please contact

Andrew McCracken
Director
Trade Negotiations – North America
Global Affairs Canada
Telephone: 343‑203‑4240