This is because the agreement will lead Mexico and Canada to increase their de minimis delivery values, which is the minimum value of an imported shipment subject to duty collection and customs documentation. Mexico doubles its de minimis threshold from $50 to $100, and Canada doubles its threshold from $20 ($15.13) to $40 $US ($30.25). The trade agreement also means that Canadian consumers do not have to pay tax on cross-border online orders that cost $150 ($113.44) or less; Mexican buyers do not have to pay tax on online cross-border orders equivalent to $117 or less. The agreement also provides for the introduction of a new phase of exemption for products with or below 150 CAD. However, this exemption only applies to customs duties. Taxes are seven times higher than tariffs alone, so duty exemption has a much lower impact on retail prices. However, if the agreement provides that the de minimis threshold for products imported into the United States is at least $100, it will not affect the United States. What for? Well, the U.S. has used the de minimis value of $800 since the Obama administration signed amendments to the Trade Facilitation and Enforcement Act. So far, no one has commented on this value, so it is very likely that it will remain the same. „Changing de minimis values would be a disaster,“ said Diane Brisebois, CEO of the Trade Council of Canada. „This would immediately penalize Canadian businesses. They would have to pay the revenue tax and taxes, whereas the American online seller would not have to.

It makes no sense. After 13 months of heated debate and lengthy negotiations, the USMCA trade agreement could finally enter into force. The agreement, also known as „New NAFTA,“ was officially signed on November 30, 2018, but had no effect because of Congress. While concerns remain about labour and environmental legislation, House of Representatives spokeswoman Nancy Pelosi recently hinted that the USMCA agreement could be ratified by the end of this month. If the USMCA provisions are adopted, they will significantly affect not only the automotive and agriculture sectors, but also e-commerce. Here`s what the U.S. Mexico Accord Canada, or USMCA, will mean for online shoppers when it comes into effect (probably at some point in 2019). But once the agreement is ratified, shipments worth $2,500 will be treated as express shipments.