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📦 Goods of Mexico or goods of the United States provided for in note 6(a) to this subchapter

Goods of Mexico or goods of the United States provided for in note 6(a) to this subchapter

HS Code:

📦

Overview

Goods of Mexico or the United States provided for in note 6(a) to this subchapter generally include specific products that qualify for preferential treatment under the United States-Mexico-Canada Agreement (USMCA). These goods often encompass agricultural products, manufactured items, and other commodities that meet the rules of origin criteria outlined in the agreement. This category ensures reduced or eliminated tariffs for qualifying goods, fostering trade between the two nations. The Harmonized System (HS) Code for these goods varies depending on the specific product, as note 6(a) refers to a broad provision rather than a single code.

Total Trade Volume

USD 677 billion

Data from 2022

Source

United States Census Bureau, International Trade Data

Tariff Analysis

Average Rate

0% (under USMCA preferential treatment for qualifying goods)

Highest Rate

Up to 25% for non-qualifying goods or under specific retaliatory measures

Lowest Rate

0% for most goods meeting USMCA rules of origin

Common Restrictions

  • Rules of Origin compliance required for preferential treatment
  • Quotas on specific agricultural products like dairy and sugar
  • Documentation and certification requirements for claiming preferences
  • Seasonal restrictions on certain perishable goods

Market Trends

Increased demand for automotive parts and electronics

Boosted bilateral trade due to integrated supply chains under USMCA, with Mexico becoming a key supplier of auto parts to the U.S.

2021-2022

Growth in agricultural exports from Mexico to the U.S.

Significant rise in exports of fruits, vegetables, and beverages, driven by consumer demand for fresh produce in the U.S. market.

2020-2022

Shift towards nearshoring in manufacturing

U.S. companies increasingly relocate production to Mexico to reduce costs and mitigate supply chain disruptions, enhancing trade volumes.

2022-2023

Recent Developments

USMCA Dispute Resolution on Automotive Rules of Origin

A dispute panel ruled in favor of Mexico and Canada regarding the interpretation of automotive rules of origin, easing compliance for manufacturers.

January 2023

Expected to increase trade in automotive goods by reducing regulatory burdens for Mexican exporters to the U.S.

U.S. Tariff Threats on Mexican Agricultural Goods

Discussions emerged over potential tariffs on Mexican agricultural products due to disputes over GMO corn imports, creating uncertainty.

February 2023

Could lead to retaliatory measures and disrupt agricultural trade flows if unresolved.

Expansion of USMCA Labor Provisions Enforcement

The U.S. invoked labor provisions under USMCA to address worker rights issues in Mexican factories, leading to improved conditions.

May 2023

Strengthens trade relations by ensuring fair labor practices, potentially increasing costs for manufacturers but improving long-term stability.