The United States-Mexico-Canada Agreement (USMCA) Removes “Margin Killers” in the Post COVID-19 Economy
July 1, 2020
The USMCA will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America. It will also bring lucrative opportunities to boost cross-border e-commerce.
WASHINGTON– Mexico and Canada are the top two export destinations for U.S. Small and Medium-Enterprises (SME) goods. In 2016 (latest data available), 82,000 U.S. small and medium sized businesses exported $51.2 billion in goods to Canada, and 53,000 U.S. SMEs exported $76.2 billion in goods to Mexico.
Now, for the first time in a U.S. trade agreement, the USMCA includes a dedicated chapter on SMEs, as well as other key provisions supporting SMEs throughout the agreement.
In recognition that digital trade represents enormous value to the U.S. economy and plays a critical role in fostering economic growth and innovation, the USMCA includes a first-of-its-kind chapter on digital trade that contains the strongest commitments of any international agreement.
Entrepreneurs on both sides of the Mexican border are working with their State Government agencies to level up their digital efforts for exportation and distribution without having to rely on a supply chain organized by brokers that exhaust profit margins. These “margin killers” are facing extinction as entrepreneurs are understanding the opportunities being afforded to them under USMCA.
“In today’s market conditions, we have to work to create win-win opportunities for all. The brokers that have historically taken advantage of exporters, and inflated market prices, will have a hard time doing so in the post COVID-19 economy under the new United States-Mexico-Canada Agreement. The United States Business Association of E-Commerce will work to support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America” said Tayde Aburto, CEO of the USBAEC.
Businesses interested in promoting their products and services online and leveraging the benefits of the USMCA can join the Exporters/Importers marketplace.
About the United States Business Association of E-Commerce:
The United States Business Association of E-Commerce is an online business association connecting small and medium-sized enterprises (SMEs) with domestic and global buyers and leveraging an online platform to help businesses compete more effectively in the digital economy.