Advocacy Alert: NAFTZ Backs Bipartisan Bill to Fix USMCA FTZ Disparities – December 17, 2025

Today (Dec. 17, 2025), NAFTZ endorsed the bipartisan Foreign-Trade Zone Export Enhancement Act of 2025, legislation that would address a longstanding imbalance under the U.S.-Mexico-Canada Agreement (USMCA) that disadvantages manufacturers operating in U.S. Foreign-Trade Zones.

Under current USMCA rules, U.S. FTZ manufacturers must pay duties on imported inputs before exporting finished goods to Canada or Mexico—even when those goods otherwise qualify for USMCA preferential treatment. Meanwhile, Canadian and Mexican producers benefit from national duty-relief programs that eliminate these costs. NAFTZ has raised these concerns for many years—dating back to the NAFTA era—and has consistently engaged Congress and federal agencies to seek a practical solution. This legislation reflects that sustained advocacy and would help restore parity by allowing the use of Chapter 98 duty-relief treatment for certain FTZ-produced or condition-changed goods.  Read the full press release about this bill and NAFTZ's endorsement here.

Call to Action
If you are impacted by this trade agreement disparity, we need to hear from you. You may be manufacturing in a U.S. FTZ and experiencing a cost disadvantage when you export to Mexico or Canada. Or perhaps manufacturing opportunities in your community were lost because the FTZ program did not offer the tariff relief needed to make U.S. production competitive with locating in Mexico or Canada.

If so, please contact Melissa Irmen, NAFTZ Director of Advocacy and Strategic Relations, at mirmen@naftz.org to share your experience and get involved in our efforts to correct this disparity and strengthen U.S. manufacturing.