TradeFTA
Free Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.
A Free Trade Agreement (FTA) is a binding agreement between two or more countries that establishes the progressive or immediate elimination of tariffs and the reduction of non-tariff barriers to trade in goods and services. FTAs also typically include provisions on investment, intellectual property, economic competition, and dispute resolution.
Mexico has one of the world's most extensive trade agreement networks: 14 active FTAs with more than 50 countries. This makes Mexico a privileged manufacturing and export platform, as its products can access markets representing over 60% of global GDP with reduced or zero tariffs.
To take advantage of an FTA, goods must comply with the specific treaty's rules of origin and have a valid certificate or declaration of origin. It is not enough for goods to be shipped from a party country; they must have been produced or substantially transformed there.
USMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.
TariffsPreferential Tariff Rate
A reduced or zero duty rate applied to imports from countries with which a free trade agreement or other preferential arrangement is in effect.
TradeRules of Origin
Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free trade agreements.
DocumentsCertificate of Origin
Document certifying that goods originate in a specific country, required to claim preferential tariff rates under trade agreements.