Mexico is one of the few countries that have had beneficial trade agreements with the United States. As of 2020, the United States-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA). This revised trade agreement has multiple advantages for these countries, and the United States stands to benefit from Mexico’s trade liberalization efforts. Interested in learning more about the advantages of USMCA? Here, we share some of the top ways that the new agreement has supercharged manufacturing solutions in Mexicali:
What Is USMCA?
The United States, Mexico, and Canada entered USMCA effective July 1, 2020. This newly crafted trade agreement was designed to be mutually beneficial for all countries in the North American continent. USMCA aims to create a more balanced trade environment while growing the North American economy. A high-standard trade agreement fosters more accessible markets and fairer trade. Under this reorganized agreement, qualifying goods and services that were tariff-free under NAFTA remain free of tariffs under USMCA.
The Benefits of USMCA
USMCA was enacted to make it easier for participating countries to conduct business across borders. This pact is a win for all companies in North America, but it’s especially beneficial for small businesses. One of the critical features of USMCA is that there’s no requirement for a company providing cross-border services to have a physical presence in that country. If your business is looking to export goods, you’re no longer required to have an office or other physical presence in the country of export as of 2020.
Another advantage that’s great for all businesses is reduced red tape at the border. E-signatures, self-certification of origin, and other measures have cut down on the time it takes to get goods across international lines–which means there’s less for your team and partners to keep up with.
One of the most significant perks of the modernized agreement is that de minimis values are increased. The de minimis value is the threshold under which imported goods are exempt from customs duties and taxes. When this threshold is high, it’s more economical for brands to ship their goods across the border.
The North American Free Trade Agreement (NAFTA) was initially created in 1994 and was long overdue for revisions. Now that the USMCA is in place, Mexico is increasingly becoming a top trade and manufacturing partner of the United States. If you’re interested in exploring manufacturing solutions in Mexicali, our team would love to help. We’ve been in business for over 40 years and have built a team of over 1,000 highly skilled members. We have the capabilities to handle a plethora of projects expertly, so please reach out to us to start the process.
Meta: Are you Considering the benefits of manufacturing solutions in Mexicali? Here, we share how USMCA has revolutionized business between the United States and Mexico.
Keyword: manufacturing solutions in Mexicali
