USMCA Could Solve Supply Chain Problems
Trade attorney Nasim Fussell spoke with IFLR about why nearshoring is beneficial to the United-States-Mexico-Canada-Agreement (USMCA). Nearshoring and reshoring to North America is becoming more attractive for U.S. businesses, due in part to the trade improvements brought by the USMCA.
Businesses across the world are experiencing supply chain disruptions, and the U.S. is no exception. Delays at ports are being exacerbated by the Covid-19 pandemic and the aftereffects of heightened U.S.-China tensions, forcing many to rethink trade logistics from faraway locations. In many cases, U.S. businesses are choosing to benefit from refreshed hemispheric free trade in the Americas.
"The benefits of nearshoring to the USMCA include lower transportation costs than ocean freight, a reduction in supply chains delays and limited political risk," Ms. Fussell said.
READ: USMCA Could Solve Supply Chain Problems (subscription required)