ExecutiveOrdersEO
Proc 10053ProclamationTrump 45 · R Quiet signal

Proclamation 10053

To Take Certain Actions Under the United States- Mexico-Canada Agreement Implementation Act and for Other Purposes

This proclamation modifies the Harmonized Tariff Schedule (HTS) to implement the United States-Mexico-Canada Agreement (USMCA) effective July 1, 2020, replacing NAFTA tariff treatment. It also makes technical corrections and updates rules of origin for existing free trade agreements with Singapore, Colombia, Korea, and Panama, and corrects prior inadvertent omissions in GSP-related tariff treatment for Thailand, Argentina, and Ukraine.

Federal Register Open PDF 85 FR 39821

Impact dates

  1. HTS modifications effective per date indicated in Annex IX of Publication 5060 (Argentina/Ukraine)

  2. HTS modifications effective per dates indicated in Annex VII of Publication 5060 (technical corrections)

  3. USMCA enters into force; HTS modifications effective per Annexes I and II of Publication 5060

Key directives

  • Modify HTS per Annex I of Publication 5060 for USMCA preferential tariff treatment and rules of origin
  • Modify HTS per Annex II of Publication 5060 for staged duty reductions and agricultural tariff-rate quotas
  • Modify HTS per Annex III of Publication 5060 to terminate NAFTA tariff treatment
  • Authorize USTR to implement agricultural tariff-rate quotas under section 103(c)(4)
  • Authorize CITA to consult with Canada and Mexico on hand-loomed/cottage industry/folklore goods and provide duty-free treatment
  • Authorize USTR to fulfill section 104 consultation obligations
  • Authorize Secretary of Commerce to establish/designate USMCA Secretariat office
  • Authorize CITA to review and recommend textile/apparel rule of origin modifications based on availability changes
  • Authorize CITA to direct action under sections 207(a)(2)(B) and 207(a)(1)(B) for textile/apparel goods
  • Authorize Secretary of Treasury to direct action under section 207(a)(1)(B)(i) or 207(c) for non-textile/apparel goods
  • Authorize USTR, after consulting Secretary of Transportation, to exercise section 324 authority on long-haul trucking
  • Authorize USTR to consult on joint reviews under article 34.7

Who is ordered

Timeline

Immediate

  • HTS modifications for USMCA implementation enter into effect per dates in Annexes I and II of Publication 5060
  • NAFTA tariff treatment terminated via Annex III modifications

Near term (90d)

  • Staged duty reductions for USMCA originating goods take effect per schedules
  • USTR authorized to implement agricultural tariff-rate quotas
  • CITA authorized to establish procedures for textile rule of origin modifications

Long term

  • Future staged duty reductions under USMCA continue per agreement schedule
  • Periodic joint reviews under USMCA article 34.7
  • Ongoing administration of USMCA Secretariat office within Commerce Department

Risks & tensions

  • Agricultural tariff-rate quotas may create tension with Canadian and Mexican exporters if administered restrictively
  • Long-haul trucking provisions (section 324) historically contentious with Mexican operators
  • Textile and apparel rule of origin modifications could shift supply chain costs
  • CITA authority delegation to unelected officials for trade actions raises traditional accountability concerns
  • USMCA joint review consultations (article 34.7) may become politically sensitive in future administrations
Proclamation 10053: To Take Certain Actions Under the United States- Mexico-Canada Agreement Implementation Act and for Other Purposes · Executive Orders