USMCA is the new free trade agreement between Canada, USA, and Mexico agreed in 2018. This agreement is a revision of NAFTA that seeks to strengthen the support of manufacturing by rebalancing trade, amongst other things. What implications can this have over your industry?
Importers will no longer require formal certification of origin under the USMCA. This certification can be achieved informal documentation, such as commercial invoices, and can be completed by the producer, importer, or exporter, making it easier than ever before.
In general, just as NAFTA, the USMCA virtually eliminates all tariffs and keeps North America duty-free as long as certain criteria are met.
To the automotive industry, the new agreement mandates that, in order for the final product to be sold tariff-free, cars and trucks must be made with at least 75% of its components manufactured in either of these countries. This is to incentivize the manufacturing of cars in North America.
The textile industry also had a revision as the USMCA promotes greater use of locally produced fabrics, yarns, and fibers by requiring that pocketing fabric, coated fabric, sewing thread, and narrow elastic bands be made in the region when applied to most finished products.
As the pandemic is cutting supply chains from Asia, there is a bigger incentive in producing locally, as now it is more important than ever to prevent stopping production and to benefit from duty-free commerce when exporting from Mexico to USA or Canada.
Since producing locally is now better for exporting to the USA and Canada, here at VYNMSA we would like to assist you in settling in Mexico.
We are one of the leading industrial real estate developers in Mexico. Plus, we have over 29 years of experience and have delivered over 450 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects. All while offering lease and sale solutions that always have a win-win approach.
We also are Broker Friendly and have around 20 inventory buildings ready for immediate occupancy. This is a total space of 1.5 million SqFt across Northeast and Central Mexico.
Contact us and set shop in Mexico with VYNMSA to start enjoying the benefits of the USMCA.