Legal Framework Governing Foreign Direct Investment from the United States and Canada in Mexico
A large number of companies considering relocating their business abroad have turned their eyes to Mexico, which has become an attractive place for investors to relocate their business, mainly because it is close to the United States and Canada (nearshoring), the labor costs are relatively low, the availability of IMMEX (maquiladora) program, and because there is a preferential treatment to originating goods and foreign investments from the United States and Canada that are protected under the USMCA, among other factors.
Non-Preferential Origin Rules ā Which Do You Prefer?
By: By Adrienne Braumiller, Partner & Founder, Braumiller Law Group
There are two basic sets of country of origin rules that may apply to imports: (1) The preferential origin rules for articles considered āoriginatingā under a free trade agreement; and (2) the non-preferential rules for articles not qualifying under a free trade agreement.Ā
Does NAFTA 2.0 Modernization Mean More Opportunity for Fraud?
Many new technologies have erupted in the last 24 years, so sure, NAFTA was due for an update. Ecommerce has certainly also sparked the need for a facelift. But modernized provisions for certification of origin (which is how countries determine which shipments qualify for duty-free status) may lead to…
