Us Mexico Trade Agreement Fact Sheet
In order to increase cross-border trade, the United States has reached an agreement for Mexico to increase its de minimis shipping value from $50 to $100. Shipping values up to this level would allow entry into Mexico without customs duties or taxes and with a minimum of formal entry procedures, allowing more businesses, especially small and medium-sized enterprises, to be part of cross-border trade. New traders currently entering the Mexican market will also benefit from lower costs to reach consumers. U.S. express distributors, who transport many low-quality shipments for these distributors, also benefit from reduced costs and increased efficiency. On June 23, 2020, Mr. Luz Maria de la Mora, Under Secretary of State for Foreign Trade at the Mexican Ministry of Economy, said: “The USMCA provides security, clear rules, maintains free trade and preserves North American integration.” For the first time, a trade deal requires that major categories of U.S. exports to Mexico include computer and electronic products, transportation equipment, petroleum and coal products, and chemicals. Every day, $1.7 billion crosses the border in mutual trade in goods and services. More than 50,000 small and medium-sized enterprises in the United States export to Mexico. The United States and Canada enjoy the largest bilateral trade and investment relationship in the world.
In 2019, bilateral trade in goods between Canada and the United States exceeded $US 612 billion. Exports to Canada totaled $292 billion and made it the largest export destination for the United States. The United States, Mexico and Canada have agreed on non-discrimination and transparency obligations with regard to sales and distribution, as well as labelling and certification rules, in order to avoid technical barriers to trade in wines and spirits. They agreed to continue to recognize Bourbon Whiskey, Tennessee Whiskey, Tequila, Mezcal and Canadian Whisky as distinctive products. The U.S.-Canada trade relationship is the largest bilateral flow of income, goods and services in the world, while Mexico is the second largest trading partner of the United States after Canada. In addition, the report points out that foreign direct investment and remittances are also an important factor in trade between Mexico and its NAFTA partners. The updated chapter on financial services contains commitments to liberalise financial services markets and facilitate a level playing field for the United States. financial institutions, investors and investments in financial institutions and cross-border trade in financial services. The Chapter also retains the discretion of financial supervisors in order to ensure financial stability. In 1994, the United States, Mexico and Canada created the world`s largest free trade region with NAFTA, generating economic growth and helping to improve the standard of living of people in all three member countries.