CUSMA updates to transport regulations

Summary#

These are final amendments (SOR/2020-150) that update Transport rules so they refer to the new Canada–United States–Mexico trade deal instead of the old NAFTA wording. The changes were registered on June 26, 2020 and published in the Canada Gazette on July 8, 2020.

What it does#

• Updates definitions so CUSMA (the Canada–United States–Mexico Agreement) is named in the rules instead of NAFTA.
• Changes wording in the Canadian Aviation Regulations so certain flight training and specialty air service authorizations refer to the correct chapter and annex of CUSMA, and so that foreign licences under an air operator certificate issued under CUSMA are accepted where appropriate.
• Changes the Motor Vehicle Safety Regulations so the definition of a “used vehicle” from Mexico refers to CUSMA (Article 2.1 of Chapter 2) instead of NAFTA.
• Sets the amendments to come into force on the day the Agreement comes into force, or on the day these regulations are registered if that is later.

Who's affected#

• Operators and businesses in aviation: flight training schools, specialty air service operators, and air operators that hold foreign certificates under CUSMA.
• Vehicle importers and dealers dealing with used cars from Mexico who rely on the definition of “used vehicle.”
• Transport Canada and regulators who maintain the rulebooks and apply them.
• General public only to the extent they buy imported vehicles or use certain aviation services; the changes are technical updates, not new rules.

Why it matters#

• It keeps federal rules consistent with the modern trade agreement between Canada, the U.S. and Mexico, avoiding confusion about which international rules apply.
• For aviation businesses, it clarifies which foreign licences and air-operator arrangements are recognized under the new agreement.
• For vehicle importers or buyers, it ensures the legal definition of a “used vehicle” from Mexico matches the current trade text, which can affect import rules or paperwork.
• The government says these are technical corrections with no change in costs to businesses.