United States-Mexico Trade Agreement

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The US and Mexico reached a tentative agreement that overhauls the North American Free Trade Agreement.

Part of the agreements reached between the parties include:

  1. Stricter rules for Mexican car exports to the US – including a requirement that 75% of the content be made in North America and 40-45% of the content made with workers earning at least $16/hour (three times more than Mexico’s minimum wage). This has the goal of discouraging companies to relocate to lower wage Mexico.
  2. Mexico has agreed to pass a law giving workers the right to union representation, and to adopt labor laws that meet UN standards.
  3. Certain steel and aluminum must be sourced in North America
  4. New rules to country of origin for textiles, chemicals, industrial goods.
  5. Intellectual property, copyright holders will have copy right protection in markets of all member countries.
  6. Digital trade, tariffs will be prohibited for digital products that are distributed electronically.
  7. Agriculture, the US and Mexico agreed not to impose tariffs on each other’s agricultural goods and not to use export subsidies.

Call David Hsu if you have any further questions on the new U.S.-Mexico Trade Agreement at 832.896.6288 or by email at dhsu@givensjohnston.com.

US/Mexico to reach NAFTA deal on Monday August 27th?

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According to Bloomberg News, sources close to the talks between the US and Mexico on North America Free Trade Agreement differences will reach an agreement as soon as Monday, August 27th.

During the campaign, President Trump said he would renegotiate the 24-year old trade deal to better benefit US jobs. The U.S. Trade Representative Robert Lighthizer and his Mexican counterpart, Mexican Economy Minister Ildefonso Guajardo are currently in talks and any deal would need to approval of President Trump.

Does the NAFTA certificate of origin have to be in English?

NAFTA Cert

I am frequently asked if the NAFTA Certificate of Origin has to be in English.

The short answer is no –

The rule (in bold) states:

Section A – Certification of Origin

Article 501: Certificate of Origin

  1. The Parties shall establish by January 1, 1994 a Certificate of Origin (CO) for the purpose of certifying that a good being exported from the territory of a Party into the territory of another Party qualifies as an originating good, and may thereafter revise the Certificate by agreement.
  2. Each Party may require that a Certificate of Origin for a good imported into its territory be completed in a language required under its law.

For importations into the US, the NAFTA CO can be in English, Spanish or French, however, Customs does have the right to request any non-English certificate to be translated into English.

Let me know if you have any other NAFTA questions. If enough people ask I’ll post the reply on this blog.