The Government of Mexico published an agreement that discloses the export quotas for non-originating textile merchandise and clothing, subject to preferential tariff treatment, pursuant to the Treaty between Mexico, the United States and Canada (USMCA).
The USMCA states in Chapter 6 (Textile Goods and Clothing), Annex 6-A (Special Provisions), Section B (Tariff Treatment for Certain Textile Goods and Clothing) that the United States will not apply customs duties to textiles and clothing that are assembled in Mexico, from fully formed and cut fabrics in the United States and exported from and reimported into its territory.
Likewise, Section C (Preferential Tariff Treatment For Non-Originating Goods of Another Party) of the aforementioned Annex 6-A establishes that each Party shall apply the preferential tariff treatment applicable to originating goods established in its Schedule in Annex 2- B (Tariff Commitments), up to the annual amounts specified in Appendix 1 (Preferential Tariff Treatment for Non-Originating Clothing), in Appendix 2 (Preferential Tariff Treatment for Non-Originating Fabrics and Textile Goods) and up to the annual amount, in kilograms (kg), specified in Appendix 3 (Preferential Tariff Treatment for Non-Originating Cotton or Artificial or Synthetic Fiber Yarns).
Textile export quotas
On the other hand, the quotas for exporting to the US market are: cotton / artificial or synthetic fiber clothing (45 million MCE), wool clothing (1.5 million MCE), fabrics and made-up textile goods (22.8 million). MCE), cotton threads or artificial or synthetic fibers (700,000 kilos).
Export quotas to Canada are: cotton / artificial or synthetic fiber clothing (6 MCE MCE), wool clothing (250 MCE MCE), fabrics and made-up textile goods (7 MCE MCE) and cotton yarns or of artificial or synthetic fibers (1 million kilos).
According to the Ministry of the Economy, who published the Agreement in the Official Gazette of the Federation this Monday, the Foreign Trade Law provides that the quotas will be assigned through public bidding and that the Ministry of Economy may choose other allocation procedures. that promote the competitiveness of the productive chains and guarantee adequate access to new beneficiaries.
In the particular case of the quotas referred to in this Agreement, most of them have very low demand, for which reason it is considered that a less burdensome allocation procedure can be defined than public bidding, in which there are various administrative steps and a disbursement in the offer to become creditor of the quota, which is perfectly dispensable and can be operated through the procedure of assigning First in Time, First in Right to the presentation of the corresponding applications.