Trade Agreement Parity

Over a year ago, the NAFTZ launched the Trade Agreement Parity (TAP) Initiative, the Association's highest priority legislative objective which aims to level the playing field for the US manufacturing industry and the FTZ community.

The Problem: Manufacturers in FTZs do not have a level playing field

The US extends duty-free entry to goods manufactured abroad by firms in FTZ partner countries but not to manufacturing firms located in US foreign-trade zones. This inequity occurs even when the FTZ products meet the rules of origin under NAFTA and other established US FTAs. The problem grows. Over the next few years 35 percent of US manufactured imports will be imported from US FTA partners.

The Solution: a legislative proposal that levels the playing field for US manufacturers

It would extend US FTA treatment to US FTZ-based producers who "export" to the Us market using imported inputs that are sourced from US FTA partner countries. US FTZ-based producers must observe the relevant US FTA rules of origin.

Estimated Impact

• Economic impact of the proposal - over $66 billion in new shipments from US FTZs into the US market

• Job creation - nearly 95,000 new manufacturing jobs in US FTZs

• An economic study is currently being conducted by two economists at the Peterson Institute for International Economics which will show the positive impact on the US economy over the next 5 years

• Higher pay and living standards for manufacturing and other zone workers

• These economic benefits will be distributed across the US and Puerto Rico

• Clear evidence that the proposal will benefit the US economy in both job increase and US business growth

TAP - Quick Facts

TAP Proposal Fact Sheet

TAP Economic Development Study

The NAFTZ has retained two economists from the Peterson Institute of International Economics that are currently producing an economic developement study on the impact of TAP upon the US economy and manufacturing sector. This study, once completed, will form a crucial role in our advocacy efforts with federal and state legislators.

The TAP economic development study has been made possible by the generous support of the following companies and FTZs:

If you would like to contribute to the NAFTZ's TAP fund please call 202-331-1950 for more information. Your support will make this initiative a reality.