North American trade deal to boost Canadian logistics

Canada’s truck sector is set for a boost under the US-Mexico-Canada Agreement (USMCA), North America’s new trade framework that was implemented mid-way through 2020.

For manufacturers, an increase in localisation requirements means that 75% of a vehicle must now originate from North America, up from 62.5% under the original North American Free Trade Agreement (NAFTA). Stiffer localisation rules will benefit domestic suppliers, but could challenge truckmakers that have been more reliant on parts from abroad. Paccar (along with Kenworth and Peterbilt), Mack and Navistar are homegrown brands, and may naturally boast higher supply chain localisation than others.

For fleets, trucking activity is expected to surge