hey may notice some of their suppliers can no longer qualify their goods as duty-free under the new agreement. However, while trade treaties are a key factor to consider when reviewing the procurement decision tree, they are just one of several factors.
With their legacy input no longer exempt from duties, they may explore procurement routes in other countries worldwide. As a result, the new sourcing model may not qualify as duty-free.
CUSMA came into force during the heart of the COVID pandemic. As a result, importers and exporters could be forgiven for overlooking CUSMA’s impact on their supply chains.
The concern has caused some businesses to reassess tried-and-true supply chain strategies such as just-in-time manufacturing—for the long term. Whatever the future holds, all businesses that import or export will need to layer CUSMA into their sourcing decisions.
agreement does not require companies to complete a formal CUSMA certificate of origin.
They still need to analyze their supply chains. They need to ensure they comply with the details of the treaty.
CUSMA was born into a world of trade far different from its predecessor and it has rewritten the rules for Canadian importers and exporters
The business world has shrunk, and supply chains have grown longer and more complex.
. Proximity still counts, as do shared language and business culture in the case of the U.S.
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