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St. Louis, Missouri
Navojoa, Sonora, Mexico
NAFTA BENEFITS
NAFTA (North American Free Trade Agreement):
- NAFTA is the free trade agreement among the United States, Canada and Mexico which became effective on January 1, 1994.
Under NAFTA, most goods produced in Mexico can enter the United States 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 assembled from components or manufactured from raw materials in Mexico 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 under NAFTA.
Duty-free entry into the United States under NAFTA may provide a competitive advantage:
- Savings on Mexican goods which enter the United States duty-free under NAFTA may have a competitive advantage
over similar goods from a non-NAFTA country, on which duties must be paid.
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