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Fast-moving trade developments present challenges and opportunities for inbound companies

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August 2020


Developments surrounding the US-Mexico-Canada Agreement (USMCA), US-China trade relations, and export controls and sanctions potentially could have significant impacts for inbound company operations.  While subject to many of the same rules as outbound companies with respect to these issues, inbound companies also face additional hurdles in determining how to chart an effective and efficient course of action because of their non-US headquarters and competing priorities.  

This Insight focuses on inbound companies with respect to recent developments, including:

  • evaluating USMCA qualification and compliance with requirements, especially with respect to key aspects that differ from NAFTA;
  • analyzing their supply chains to reduce disruption and increase efficiency, particularly with respect to China; and
  • assessing and addressing impacts related to export controls and sanctions rules.

The takeaway

With the USMCA replacing NAFTA, ongoing US-China trade tensions, and export controls and sanctions issues, the international trade space continues to evolve.  For inbound companies, the developments can greatly impact their investment into the United States and global supply chains.  As a result, they may want to consider several available strategies to manage changes, from re-sourcing supply chains to adjusting certain controls and processes. 

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Anthony Tennariello

Customs and International Trade Co-leader, PwC US

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