Mexico - Trade AgreementsMexico - Trade Agreements
For U.S. exporters, Mexico’s trade liberalization efforts mean that the Mexican market is one of the most open and competitive in the world. The United States, Mexico, and Canada are parties to the North American Free Trade Agreement (NAFTA) and there are no tariffs for qualifying goods and services traded among the three countries (Note: As of June 2019, there are tariffs in place for specific categories of products. See the Trade Barriers Sections). The North American Free Trade Agreement (NAFTA), signed by the United States, Canada, and Mexico (the Parties), entered into force on January 1, 1994. Under NAFTA, tariffs on nearly all goods were eliminated progressively, with all final duties and quantitative restrictions eliminated, as scheduled, by January 1, 2008. After signing the NAFTA, the Parties concluded supplemental, and largely unenforceable, side agreements on labor and the environment.
The United States entered into negotiations with the Parties seeking to update and rebalance NAFTA in August 2017. The United States–Mexico–Canada Agreement (USMCA) was signed on November 30, 2018 and will replace NAFTA to better serve the interests of American workers, farmers, ranchers, and businesses. The USMCA modernizes and rebalances U.S. trade relations with Mexico and Canada, and it reduces incentives to outsource by providing strong labor and environmental protections, innovative rules of origin, and revised investment provisions. The Agreement also brings labor and environment obligations into the core text of the agreement and makes them fully enforceable.
The Agreement upgrades NAFTA in a number of key areas. For example, the USMCA establishes the strongest and most advanced provisions on intellectual property and digital trade ever included in a trade agreement. Finally, the USMCA also includes a number of groundbreaking provisions to combat non-market practices—such as subsidies and currency manipulation—that have the potential to disadvantage U.S. workers and businesses. In addition, through updated rules of origin, the USMCA requires that 75 percent of auto content be produced in North America and that key auto core parts always be originating in North America. For more information visit the Office of United States Trade Representative (www.ustr.gov).
Mexico is a member of the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC), the G-20, and the Organization for Economic Cooperation and Development (OECD). Mexico has 13 Free Trade Agreements (FTAs) with 50 countries—including NAFTA and FTAs with the European Union, European Free Trade Area, Japan, Israel, 10 countries in Latin America, and the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Mexico is also a member of the Pacific Alliance, a trade bloc formed by Mexico, Chile, Colombia, and Peru in 2011.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The United States entered into negotiations with the Parties seeking to update and rebalance NAFTA in August 2017. The United States–Mexico–Canada Agreement (USMCA) was signed on November 30, 2018 and will replace NAFTA to better serve the interests of American workers, farmers, ranchers, and businesses. The USMCA modernizes and rebalances U.S. trade relations with Mexico and Canada, and it reduces incentives to outsource by providing strong labor and environmental protections, innovative rules of origin, and revised investment provisions. The Agreement also brings labor and environment obligations into the core text of the agreement and makes them fully enforceable.
The Agreement upgrades NAFTA in a number of key areas. For example, the USMCA establishes the strongest and most advanced provisions on intellectual property and digital trade ever included in a trade agreement. Finally, the USMCA also includes a number of groundbreaking provisions to combat non-market practices—such as subsidies and currency manipulation—that have the potential to disadvantage U.S. workers and businesses. In addition, through updated rules of origin, the USMCA requires that 75 percent of auto content be produced in North America and that key auto core parts always be originating in North America. For more information visit the Office of United States Trade Representative (www.ustr.gov).
Mexico is a member of the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC), the G-20, and the Organization for Economic Cooperation and Development (OECD). Mexico has 13 Free Trade Agreements (FTAs) with 50 countries—including NAFTA and FTAs with the European Union, European Free Trade Area, Japan, Israel, 10 countries in Latin America, and the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Mexico is also a member of the Pacific Alliance, a trade bloc formed by Mexico, Chile, Colombia, and Peru in 2011.