Los Angeles, California
As companies continue to deal with supply chain logistics disruptions caused by the ongoing coronavirus pandemic, they must now adjust to the latest international trade agreement: the United States Mexico Canada Agreement (USMCA). USMCA went into effect July 1 and is impacting an already-challenged supply chain logistics environment. At Westset Logistics and Distribution our team of logistics and transportation specialists are here to help your company navigate the free trade agreement’s rules and regulations. If you engage in cross-border trade at any point in your company’s supply chain, we can help you with compliance, documentation, and navigating this new international agreement.
USMCA
USMCA replaces the North American Free Trade Agreement, which is more than 26-years-old. Its “rules of origin” requirement raises the amount of content that must be made or sourced in North America in order to achieve zero-tariff levels for certain situations. USMCA also incorporates new and updated sections on topics such as intellectual property rights, enforcement, digital trade, and labor rights based on the original NAFTA. The agreement addresses many existing cross-border issues and red tape. The agreement also emphasizes the need for uniform treatment of imports across ports and border crossings.
Business-To-Business (B2B)
The growth in sales provided by USMCA favors domestic business-to-business (B2B). However, one of the challenges that come with open access to new markets is a requirement for integrated shipping and storage solutions. Westset Logistics fulfills the B2B requirements for warehousing and distribution across a variety of business sectors including industrial, consumer goods, dry food, non-perishable items, government, and some military items. Lack of proper and accurate regulatory information is one of the biggest hindrances to cross border trade. USMCA provides guidelines to provide easy, free, and online access to the country’s regulations, trade procedures, laws, duties, various charges, and documentation requirements. Westset Logistics works within these guidelines to streamline compliance, documentation processing, and overall supply chain efficiency and security.
*Read more about Westset’s new facility HERE
eCommerce
The customs and trade facilitation provisions of the USMCA is aimed at greatly reducing the costs and bringing ease and predictability into cross border transactions, thus enabling the flow of millions of eCommerce shipments. Though the changes may seem nuanced, once understood, the ease of doing business and increasing the de-minimis values will make it easier for more businesses, especially small- and medium-sized ones, to be a part of cross-border trade. Westset Logistics will work diligently with eCommerce businesses ready to enjoy the opportunities of this new trade agreement, customizing our services to your needs.
COVID-19
COVID-19’s global disruption of manufacturing operations and supply lines has created uncertainty as to whether businesses are prepared to meet USMCA’s requirements. Additionally, labor shortages due to COVID-19-related illness, shelter in place orders, and related business closures have forced many companies to suspend work or move online. Although the COVID-19 containment measures have negatively impacted trade across the region and each of the USMCA countries are now in recession, business confidence remains high. The importance of maintaining stable cross-border supply chains has been underlined by various agreements and declarations and despite the COVID-19 pandemic, the US has moved forward on several fronts to advance its trade policy objectives.
The enactment of USMCA is an excellent opportunity for companies to expand their foray from North America into the international market. As Southern California’s Class A 3PL, Westset Logistics can help you go global by providing excellence in storage and materials handling for all industrial and consumer products. Westset Logistics and Distribution experts can work with your company to meet your specific needs, ensuring you comply with all new regulations and benefit as greatly as possible from the new opportunities USMCA presents.
For your supply chain logistics through the West Coast of the USA, please contact us for information on 3PL warehousing, drayage and trucking services HERE