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U.S. Foreign-Trade Zone Operators Seek Congressional Fix for USMCA Duty Imbalance

American manufacturers operating in foreign-trade zones face a significant competitive disadvantage compared to their Mexican and Canadian counterparts under the United States-Mexico-Canada Agreement, according to the National Association of Foreign-Trade Zones.

The NAFTZ is pressing Congress to eliminate duty requirements that U.S.-based producers must pay on imported components, even when finished goods qualify for USMCA preferential treatment. Mexican and Canadian competitors benefit from duty-relief programs unavailable to American manufacturers, creating unequal market conditions.

NAFTZ President Jeff Tafel told FreightWaves that the disparity puts U.S. producers at a cost disadvantage solely because they manufacture domestically. The association is backing two companion bills—the Foreign-Trade Zone Export Enhancement Act of 2025 and 2026—to provide duty relief for qualifying merchandise exported to Mexico or Canada. Tafel urged Congress to address the issue independently of ongoing USMCA review negotiations.