The past year was marked by significant declines in imports and exports because of the coronavirus pandemic. However, the longstanding partnership between the United States and Canada continued to thrive despite the challenging times because of cross-border trade.
The United States is Canada’s most important trading partner and it is the same the other way around. The relationship was strengthened further with US-Mexico-Canada Agreement (USMCA) that took effect in June 2020. The agreement has accelerated the North American economic recovery and provided the much-needed certainty to businesses.
The new and enforceable 3-nation free trade deal has promoted modernized rules, digital trade and innovation leadership. It has also facilitated trade, improved regulatory alignment and competitiveness and ensured efficient border crossings. The reinvigorated relationship has maintained the long-standing US-Canada trade relationship and made it even stronger.
Right now, three once-in-a-lifetime events are happening simultaneously to affect both the US and Canada’s economies. Both countries are now reopening following the lockdowns. Uncertainty over US-China trade relations has lingered with the potential of recalibration of supply chains away from China. USMCA has modernized trade relationships in North America and opened new doors for American businesses.
An example of long-term greater trade opportunities in the Canadian market is eCommerce that has benefited from a provision that allows Canadian customers to avoid the payment of duties for express shipments valued up to C$150. Express shipments are also exempt from taxes if their value is less than C$40 which is double the usual threshold of C$20.
However, the most important benefit is the modernization of the trade relationship with new provisions for digital trade and intellectual property. Uncertainties in the past have been eliminated with both countries affirming their commitment to strengthen and facilitate cross-border trade. Joint efforts between the US and Canada have resulted in seamless border transfers without the unnecessary congestion.
Your best option for reliable transportation across all of North America is Titan Transline, a one-stop 3PL provider with years of experience in cross-border trade. An extensive network ensures that all shipments are seamlessly transported with real-time reporting. Clients are assured that their shipment will arrive on time, every time for a highly competitive price point.