• NAFTA is the free trade agreement among the United States, Canada and Mexico which has been in effect since January 1, 1994.

Under NAFTA, most goods produced in Mexico can enter the United States and Canada duty-free: 

• To qualify for duty-free entry under NAFTA, goods must meet rules of origin requirements.  There are several different tests which can be applied to determine if a particular good meets those requirements,  but most goods manufactured or assembled  in Mexico will meet the rules of origin requirements. 

• Even goods assembled in Mexico from non-North American components can usually meet the rules of origin requirements for duty-free entry into the United States and Canada under NAFTA.

Duty-free entry into the United States and Canada under NAFTA may provide a competitive advantage: 

• Savings on Mexican goods which enter the United States and Canada duty-free under NAFTA may have a competitive advantage over similar goods from a non-NAFTA country, on which duties must be paid.