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64 frequently asked questions about the USMCA: from 10 to 12

The Ministry of Economy published a list of 64 frequently asked questions about the Treaty between Mexico, the United States and Canada (USMCA).

In particular, the USMCA preserves the Tariff Preference Levels (TPLS) for the Mexican export of garments and products of the textile-clothing chain with preferential tariff treatment, and at the same time they are preserved the rules of origin called “thread onwards” that favor production in the region and strengthen regional supply chains.

These are questions 10 to 12 about the USMCA, answered by the Ministry of the Economy:

  1. What are the main provisions of Chapter 6 of Textile and Clothing Goods?

  • The rules of origin called “yarn onwards” are preserved, that is, the cutting and assembly process must be carried out with fabric woven with yarn produced in North America so that a good from the sector is considered as originating and can be credited to the preferential treatment of the T-MEC. Additional requirements are included for garments to be considered originating: Sewing thread, pocket fabric, and elastics and coated fabrics are required to be fully formed from any of the USMCA Parties.
  • The coverage of textile goods for folk and handmade products is expanded, in order to promote indigenous production, and be eligible for preferential tariff treatment.
  • For clothing, the requirement of “visible lining” is eliminated, and the use of “rayon filament or fiber”, other than lyocel or acetate from outside the region, is allowed.

The provision of “games and assortments” was incorporated, with which non-originating merchandise may not exceed 10% of the value of said game.

  • The percentage of “De minimis” was increased to go from 7% to 10% by weight for goods classified within chapters 50 to 63, keeping 7% for elastomers.
  • Provisions are included that allow for stricter verifications, including visits without prior notice, to verify compliance not only with rules of origin, but also with customs offenses.
  • A Textiles Committee is established, made up of government representatives from the three countries, which may consult on technical or interpretative difficulties that may arise and have greater cooperation between the authorities.
  1. What are the benefits that Mexico will obtain in Chapter 8 on Acknowledgment of the direct, inalienable and imprescriptible property of the Mexican State on Hydrocarbons of the USMCA?

  • The energy negotiation resulted in a chapter that guarantees Mexico’s independence and sovereignty in energy matters. In this way, the chapter preserves Mexico’s right to regulate and modify its laws, including the Constitution, in accordance with the commitments assumed by Mexico in other international agreements.
  • Thus, Mexico may adopt or maintain measures in sectors, subsectors or activities that are not reserved in the Annexes of Cross-Border Trade in Services, Investment and Commercial Companies of the State, as long as those measures are consistent with the Mexican agreement that is less restrictive and already ratified upon the entry into force of the USMCA. With this, legal certainty is provided and the commitments assumed by Mexico with service providers, exporters, importers and investors that participate in the sector are respected.
  1. What does Chapter 9 of Sanitary and Phytosanitary Measures contemplate?

  • Ensures the protection of life and health of people, vegetables and animals in the region. It seeks to advance scientifically based decision making and avoid unnecessary obstacles to trade.
  • Allows the Mexican health authorities to establish the level of protection they consider adequate to prevent pests and diseases from entering the country.
  • Establishes specific mechanisms and procedures on risk analysis, regionalization, equivalence, audits, import reviews and certifications that facilitate access to Mexican agricultural products to the US and Canada.
  • Establishes plans that will allow defining in greater detail and punctuality the commitments and actions of the health authorities.

 

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