Frequently Asked Questions
What is the Agreement?
The CUSMA/TMEC/USMCA is a new, high standard 21st century regional agreement between the Government of Canada, the Government of the United Mexican States and the Government of the United States of America to support mutually beneficial trade leading to freer, fairer markets, and to robust economic growth in the region. It replaced the 1994 North American Free Trade Agreement.
What is the Secretariat?
The Secretariat is an independent agency that is responsible for the impartial administration of the dispute settlement provisions of the Agreement. It has a Canadian, a Mexican, and a United States Section, each headed by a national Secretary, and with offices in each national capital. The Secretariat is accountable to the Free Trade Commission, which comprises the ministers responsible for international trade in the three member states.
For more information on the Secretariat's mandate refer to Article 30.6.3 of the Agreement.
When was the Agreement signed?
- The Agreement was signed at Buenos Aires on the 30th day of November 2018, and
- A Protocol of Amendment to the Agreement was signed at Mexico, D.F. on the 10th day of December 2019.
When did the Agreement enter into force?
The Agreement between Canada, the United States and Mexico entered into force on July 1, 2020.
What is dumping?
Dumping is the sale of goods in foreign markets at prices below those charged for comparable sales in the home market or that are below the cost of producing the goods.
What is antidumping ('AD')?
An antidumping duty is a special levy imposed on imported merchandise to protect an affected domestic industry from injury caused by sale of dumped goods in the importing country.
What is subsidy?
Generally, subsidy occurs when goods benefit from government financial assistance.
Examples of subsidies include: loans at preferential rates, grants, tax incentives, or a provision of goods or services by a government at prices below market levels.
What is a countervailing duty ('CVD')?
A countervailing duty is a special duty imposed on imported merchandise to protect a domestic industry from injury caused by subsidized imports from other countries.
What is injury ('IN')?
Injury is caused by dumped or subsidized imports resulting in lost sales, reduced prices, lost market share, decreased profits, and other such difficulties for the injured industry.
Who may complain about dumped or subsidized goods?
Injury is caused by dumped or subsidized imports resulting in lost sales, reduced prices, lost market share, decreased profits, and other such difficulties for the injured industry.
For guidelines in preparing a written complaint, you may consult:
What is an investigating authority?
'Investigating authority', means any authority of a Party that issues final determinations relating to antidumping and countervailing duties.
In Canada, final AD and CVD determinations are made by the Canada Border Services Agency (CBSA) and final Injury determinations are made by the Canadian International Trade Tribunal (CITT).
In the U.S., final AD and CVD determinations are made by the International Trade Administration (ITA) of the Department of Commerce and final Injury determinations are made by the International Trade Commission (ITC).
In Mexico final AD, CVD and Injury determinations are made by the Secretaría de Economía, Unidad de Prácticas Comerciales Internacionales.
What is a final determination?
Final determinations are definitive decisions made by investigating authorities under their domestic antidumping and countervailing duty laws. Specifically, final determinations are made pursuant to the Special Import Measures Act (SIMA) in Canada, to the Tariff Act of 1930 in the United States, and to the Ley de Comercio Exterior in Mexico.
For Country-Specific Definitions refer to Article 10.8 of the Agreement.
How can final determinations be appealed?
A final determination may be appealed to a domestic court pursuant to the judicial review process of the country or to a binational panel by filing a Request for Panel Review pursuant to Article 10.12(4) of the Agreement. The request is filed with the responsible section of the Secretariat.
How do you file a request for panel review pursuant to Article 10.12(4) of the Agreement?
For guidelines on filing a request for panel review, please consult the Rules of Procedures for Binational Panel Reviews on this site.
Who are panel members?
Panelists are chosen from rosters of experts established by the Parties to the Agreement. Panelists must be of high standing, good character, objective, reliable, and have sound judgment and general familiarity with international trade law. The majority of members of a panel, including the Chair, must be lawyers. While it is likely that the majority of panel members under Chapter 31 will be lawyers because they have to have expertise in international trade law or other legal subjects, this is not stated anywhere in the Chapter.
How long does the Agreement’s dispute settlement process take?
Under Article 10.12 Binational Panel Reviews, the rules are designed to result in decisions within 315 days after the commencement of the panel review.
Extraordinary Challenge Committee proceedings are to result in decisions of committees within 105 days after the commencement of the proceeding.
Under Chapter 31 and pursuant to Article 31.17 , panel review is designed to result in a final panel report being presented to the disputing Parties no later than 180 days after Panel selection is completed, and 150 days in cases of urgency related to perishable goods.
For matters referring to Certificate of Origin, Temporary Work Visas, Tariff Schedules and Chapter 14 Investments, please refer to Links.
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