HS Code:
Goods of Mexico or the United States provided for in note 8(a) to this subchapter refer to specific products originating from these countries under the Harmonized System (HS) Code framework, typically related to preferential trade agreements such as the United States-Mexico-Canada Agreement (USMCA). These goods often include agricultural products, manufactured items, and raw materials that qualify for reduced or zero tariffs under the agreement. This category is critical for facilitating trade between the two nations, fostering economic integration, and supporting industries reliant on cross-border supply chains. The designation under note 8(a) often pertains to rules of origin and specific tariff treatments outlined in trade agreements.
Total Trade Volume
USD 677 billion
Data from 2022
Source
United States International Trade Commission (USITC) and International Trade Centre (ITC)
Average Rate
0.5% (under USMCA preferential rates)
Highest Rate
5% (for non-qualifying goods or outside preferential agreements)
Lowest Rate
0% (for most qualifying goods under USMCA)
Increased demand for automotive parts under USMCA
Boosts bilateral trade in the automotive sector, with stricter regional value content rules driving manufacturing in North America.
2022
Growth in agricultural exports from Mexico to the US
Mexico's exports of fruits, vegetables, and processed foods have risen, supported by favorable tariff rates and seasonal demand in the US.
2021-2022
Shift toward sustainable and green products
Both countries are seeing a rise in trade of environmentally friendly goods, influenced by consumer preferences and regulatory changes.
2023
A dispute panel ruled in favor of the US interpretation of stricter rules of origin for automotive goods, impacting how vehicles and parts qualify for zero tariffs between the US and Mexico.
January 2023
May lead to increased production costs for Mexican manufacturers but strengthens US manufacturing base.
The US and Canada raised concerns over Mexico's energy policies favoring state-owned enterprises, potentially violating USMCA trade commitments.
July 2022
Could affect investor confidence and trade flows in energy-related goods if unresolved.
Adjustments were made to tariff-rate quotas for certain agricultural products like dairy and poultry under USMCA to balance market access.
March 2023
Provides predictable access for US exporters to the Mexican market while protecting domestic producers.