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Resarh Service
USMCA: Implementation and Considerations
for Congress
January 30, 2020
On January 29, 2020, the President signed into law the United States-Mexico-Canada Agreement
(USMCA) Implementation Act, H.R. 5430, which approves and implements USMCA. Once USMCA
enters into force, the obligations in that Agreement will replace the Parties' obligations under the North
American Free Trade Agreement (NAFTA). This Sidebar discusses how USMCA's obligations and other
provisions become binding on the United States; explains how USMCA will supersede NAFTA; and
identifies several considerations for Congress.
When Does USMCA Enter into Force?
USMCA's obligations become legally binding after the Agreement enters into force (with some
exceptions, as discussed below). Before USMCA may enter into force, the Parties must comply with
several steps. First, under paragraph 2 of the USMCA Protocol, each Party must submit a written
notification to the other Parties to show that it has completed all processes required by its domestic laws
to approve the Agreement. USMCA will enter into force on the first day of the third month after the
third Party submits its notification. The precise date of entry into force therefore remains in flux, as it
depends on the ability of each Party to complete all required approval and implementation procedures.
Before the United States may submit its notification to the other USMCA Parties, the President and
Congress must complete several steps. First, under the Bipartisan Congressional Trade Priorities and
Accountability Act (TPA), Congress must approve and the President must sign the implementing
legislation, a process that is now complete. Second, under the USMCA Implementation Act, at least thirty
days prior to the Agreement's entry into force, the President must notify Congress that he has determined
that [the other Parties have] taken measures necessary to comply with those provisions of the
[A]greement that are to take effect on the date on which the [A]greement enters into force. After
completion of these steps, USMCA may enter into force for the United States, and after all Parties
complete their domestic processes, the Agreement's obligations legally bind them under international law.
Congressional Research Service
https://crsreports.congress.gov
LSB10400
CRS Lega Sidebar
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