USMCA
The United States, Mexico, and Canada have updated NAFTA to create the new U.S. – Mexico – Canada Agreement (“USMCA”) . The USMCA, which goes into effect on July 1, 2020, is intended to benefit North American workers, farmers, and businesses and create a balanced environment for trade across the North American economy. Until the USMCA is in effect on July 1, NAFTA remains in effect.
As with NAFTA before it, USMCA will have trade implications that span many topics and industries including manufacturing, agriculture, automotive, energy, and textiles, to name a few. Masterpiece has been preparing for the agreement’s start and is ready to answer any questions that customers may have. For more information about differences between USMCA and NAFTA, please reference trade.gov .
It is important to note that the Harmonized Tariff Schedule of the United States will be amended as a part of the USMCA changes including rules of origin, product specific rules, and other requirements. For basic information about the agreement as it relates to trade you may visit the CBP or USTR websites.
This notification is for basic informational and advisory purposes only. As with all new government trade programs, Masterpiece will continue to monitor the situation to provide as much information as possible to its customers.
If you have a question at this time, please reference CBP’s frequently asked questions , or reach out to a local Masterpiece representative. We will do our best to get you the proper information regarding the USMCA update.
APAC Market Update
Ocean Freight
- Ocean carriers are expected to hold off on increasing loading capacity in China, while at the same time maintain blank sailings, which will impact demand for USWC services
- As a result, expect to see a spike in demand for USEC services, as many look for alternative and more reliable options
- As this happens, fast boat options like Matson and APL EXX service remain in high demand.
- Because of the demand for faster service, ZIM has launched a new service from South China (Yantian) to Los Angeles, which moves at a consistent 12-day transit time
- Similar to APL, ZIM have also added additional IPI points to their expedite service
- If you’re experiencing space/capacity issues, or concerned about current contract rate levels, please reach out to your local Masterpiece representative to see what alternative solutions are available
Airfreight
- Demand for airfreight continues to decrease out of China, while airfreight rate levels stabilize
- Demand for charters have also decreased, making the cost of charters more manageable
Regional
- Countries in Asia slowly uplifting the movement controls and restrictions this month
- Vietnam, Thailand, Malaysia have seen minimal reported COVID cases, and have re-started their economic sectors
- India, Indonesia, Philippines, Bangladesh are expecting to slowly lift restrictions in certain regions this month
Holidays
- Dragon Boat Holiday will be observed in China, Hong Kong, and Taiwan from June 25th to the 27th.
Retro T-Shirt Fundraiser
Masterpiece is pleased to bring back our retro t-shirt and tote designs for a fundraiser in support of Black, Indigenous, and People of Color art and artists. The items will go on sale for two weeks, from June 19 to July 3, and all profits will be donated to the Arts Leaders of Color Emergency Fund & the Black Art Futures Fund . Please view the merchandise and join us in supporting these causes.