The U.S. Senate last week overwhelmingly approved the U.S.-Mexico-Canada Agreement, one of the final actions required for the trade pact to move forward. Implementing the deal that would replace the North American Free Trade Agreement was a top priority for the National Marine Manufacturers Association.
“The recreational boating industry thanks Congress and the administration for working together in a bipartisan fashion to usher in a new era of free trade, which will immediately benefit businesses and workers across the continent,” Nicole Vasilaros, senior vice president of government and legal affairs, said in a statement. “With Canada and Mexico accounting for 40 percent of our industry’s annual boat and engine exports, we rely on our longstanding trade partnerships with both countries, and this agreement will protect and preserve these critical partnerships for years to come.”
According to NMMA data, that 40 percent has an estimated value of $820 million, and 18 percent of annual U.S. boat and engine imports come from Canada and Mexico, an estimated value of $600 million. NMMA said boating generates $170 billion in annual economic activity, supports 691,000 jobs and supports 35,000 businesses.
Highlights of USMCA include rules of origin that require at least 60 percent of boat and engine materials be made in North America. Regulatory coherence streamlines processes and cross-border information to reduce regulation.
The agreement will last 16 years, with review periods every six years. Mexico has approved USMCA, and Canada is expected to ratify the agreement later this month.