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The trucking industry can start the New Year by celebrating the U.S. Senate finally approving the United States-Mexico-Canada Agreement (USMCA). This new trade deal is set to replace NAFTA, and will now be sent to President Trump to sign, which is expected to happen in the coming days. The USMCA was signed by all three countries back in 2018 but has been stalled for months by the U.S. government. Now that it has been approved though, the trucking industry is finally getting some clarity on how this new trade deal will impact the industry.Modernize Trade
NAFTA went into effect back in 1994, and many elements of it reflect that time. Government officials and the trucking industry are applauding the USMCA trade deal for the ways it will modernize trade and how it reflects current trade trends. The new trade agreement includes a digital trade chapter to reflect the growing importance of a digital economy. The trucking industry plays an important role in e-commerce, which continues to flourish. The new digital trade chapter will address issues that have arisen with e-commerce such as counterfeit goods.Increase Revenue and Jobs
Despite a number of trucking companies closing down in 2019, the industry as a whole is still going strong and the USMCA will only increase that. Trucks move the majority of cross-border freight, and in 2018 trucks moved more than $770 billion worth of goods between the three countries. “Trade is central to the trucking industry — 76% of all surface freight between the U.S. and our nearest neighbors moves by truck,” American Trucking Association President and CEO Chris Spear said. “This agreement will boost both U.S. exports and gross domestic product, meaning more truck movements and delivering measurable returns for our industry.” These increased revenues will also support job growth in the industry.Faster Border Crossing
Once the USMCA goes into effect, cross-border trucks can expect to see wait times at borders begin to decrease. The new trade deal will also open up more doors for trucking companies to gain authorities for speedier customs. As wait times drop, drivers will be able to make quicker and more frequent trips. This will boost revenues for all three countries as well as trucking companies and drivers.
if you’re interested in learning more about the current rules and regulations in US and Canada and the upcoming updates, sign up today for the Safety and Compliance Specialist course. The next session starts on Monday January 27th 2020. Contact us today to enroll at 647-943-1327 or sales@avaal.com
Or call us at +1 (647) 943-1313
AVAAL Technology Solutions is the industry leader in providing cost-effective and time-saving solutions for the transportation industry.
AVAAL Technology Solutions is the industry leader in providing cost effective.