US-Canada Trade Key Facts

vehicles and essentials like tools. For duty-free vehicle trade including North American materials, the USMCA combines separate "rules of origin". While Mexico and Canada said all three nations had previously agreed to a more lax approach in order to help North American producers fulfill content rules, the US argued for a more rigorous process of identifying North American content. Mexico and Canada so expressed worries on the US's interpretation of the rules of origin. Mexico and Canada won its case before a USMCA panel in December 2022. The decision is absolute and unchangeable. All three nations declare their continuous search for a solution. The three countries may talk about possible limitations on car origin during the 2026 review of the USMCA. Referred to as P.L. 117-169, the Inflation Reduction Act of 2022 comprises rules for producing batteries and electric cars (EVs) in North America. The EV tax credit also requires that a particular amount of vital minerals come from the United States or one of one of its free trade partners, namely Canada. Providing the United States with the necessary minerals needed for electric car batteries, Canada is quite important In March 2023 the US and Canada teamed up to create the Joint Action Plan on Crucial Minerals Collaboration and the Energy Transformation Task Force.

This group initiative seeks to create a unified plan for important

supply chains including batteries, electric vehicles, and essential minerals. Under the direction of the US, the Minerals Security Partnership seeks to encourage government-private company cooperation on major mining projects. This category also includes Canada. Congress should pay attention to the use and effects of the IRA EV tax credit, USMCA rules on vehicle manufacturing sites, and cooperative efforts between US and Canada in preserving important supply lines influencing the economy. Dairy and Supply Management. By means of supply management—that is, control of output, pricing, and import restriction from other countries—Canada sustains the profitability of its poultry, egg, and dairy sectors. Under the USMCA, Canada has promised to help US dairy exports grow into other markets. Canada has set 14 TRQs—tariff-rate quotas—to help it reach this aim. These quotas let particular dairy product imports into the nation at lowered tariff rates, under specific quantities. Twice the USTR has objected to Canada's dairy TRQs under the USMCA. In the first case—which happened in December 2021—a USMCA court decided in US favor. A USMCA tribunal reached a second case agreement with Canada in November 2023.

There is no change possible for this definitive decision.

US politicians and legislators so get disappointed. Some lawmakers are pushing for the USTR to keep on helping Americans to buy cheese in Canada. Several Members have also asked about USTR looking at ways to help American dairy products be exported to other countries. Wood taken from less thick fiber-containing plants Regarding softwood lumber—a vital component for home building, restoration, and maintenance—trade conflicts between the US and Canada have lasted for many years. October 2015 brought the conclusion of the trade agreement between the United States and Canada for softwood lumber. The United States has slapped antidumping and countervailing charges (CVD) on imports of softwood lumber from Canada once the agreement came to end. Through a number of legal channels—including NAFTA, the USMCA, the WTO, and the US Court of International Trade—Canada has expressed worries regarding AD/CVD rates. Congress should review the need of a new softwood lumber agreement and thoroughly assess its possible influence on US businesses. Tariffs on lumber can affect the US market economy, so Congress started to pay attention to the issue. Congress should handle these problems. Examining the USMCA's execution—especially the joint assessment set for 2026—as well as Canada's dedication to carry out its obligations under the deal could be interesting for Congress.

Considering legislative or congressional level cooperation would help

Canada and the US Congress to solve their disputes and improve cooperation in important supply chains. Author of the report was the Congressional Research Service (CRS). It works with Congressmen and committees to offer personnel services; it is not connected to any one political party. It only works when Congress asks for help or gives it direction. As part of its administrative duties, CRS distributes reports to raise public knowledge of the material it offers to Congresspeople. This is so because CRS Reports are official government documents devoid of US copyright protection rules. Strictly forbidden is copying and distributing any CRS Report in its whole without CRS's clear consent. It is advisable to get permission from the owner of any copyrighted images or materials integrated in a CRS Report before making any changes or using the reproduced assets in any way. Essential Information Regarding the Minister the Canadian government has asked me to give the 2020 Canada's State of Trade report. The continuous COVID-19 epidemic means that the year 2020 presents hitherto unheard-of uncertainty for the whole world. This research offers Canadians a better understanding of our 2019 economic situation. Governments all around have worked together in the past three months to fight the pandemic epidemic. Their main goals are to give their population's welfare top priority and minimize the virus's economic effects. From business owners to workers, people from many backgrounds in Canada have come together to help one another through this trying time. Our companies have shown amazing flexibility and creativity in addressing problems. The success of our companies on the worldwide scene is much attributed to the creativity and tenacity of Canadians. This paper mostly focuses on the government's will to enable trade during difficult times. Many countries put trade restrictions in place as a preventative action to protect their people from the COVID-19 worldwide epidemic as it kept getting worse. Remember that the COVID-19 epidemic should not be used as justification for stopping trade or distancing oneself from the world.