How the U.S.-Mexico Agreement Is Affecting Cross-Border Trade
On October 17th, Mexico and the United States signed a mutual recognition agreement to foster secure and safe trading across the border. This agreement is the result of a pilot program between the two countries, which was instituted to test the boundaries of reliable trade. U.S. Customs & Border Protection (CBP) and Mexico’s Tax Administration were the two main organizations involved. The agreement is reflective of both the CBP’s Customers-Trade Partnership Against Terrorism(C-TPAT) and Mexico’s New Certified Companies Scheme.
C-TPAT is a U.S. government initiative to bolster positive business relations and increase the safety and efficiency of international supply. Around the world, terrorism, cargo theft, and illicit cargo trading are common issues in logistics & transportation. This agreement with Mexico is one of the many examples of its attempts to better international trading.
The mutual recognition agreement has instituted a trusted trader program. The program has exemplified both countries’ commitments to fostering economic growth while also keeping the safety of their citizens in mind.
The program is providing benefits to its participating members. Some of the perks include:
- Speedier validation process
- Customs process efficiency
- Customs transparency between countries
- Standardization of customs process
- Reduced cargo examinations
- First priority processing for businesses
- Revitalization of participating businesses
Thanks to this agreement, cross-border trading is gaining trust and momentum on both sides—something that has been lacking in the past.
Learn more about the issues of cargo theft in logistics and transportation, which can be avoided with proper asset tracking.