MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corp. (NYSE: FDX) today recognizes the entry into force of the U.S.-Mexico-Canada Agreement (USMCA/T-MEC/CUSMA). This agreement will benefit all three economies and make them more competitive around the world.
At FedEx, trade is our business, and expanding global trade is essential to our customers, our workers and our company. USMCA replaces the twenty-six-year-old North American Free Trade Agreement (NAFTA), helping to streamline trade across the North American market, which is of critical importance to FedEx and our customers.
“We applaud the governments of the United States, Mexico and Canada for working together to approve and implement an agreement that simplifies trade for the highly integrated North American supply chains,” said FedEx COO Raj Subramaniam. “Modernizing and expanding global trade through free trade agreements like USMCA breaks down trade barriers, creates new job opportunities and helps our customers reach new markets.”
USMCA makes North American trade easier and addresses issues including e-commerce and the protection of intellectual property. When it comes to day-to-day shipping for FedEx customers, USMCA offers several advantages:
- The de minimis, or duty and/or tax exemption threshold agreed to by the three governments, increases for imports into Canada and Mexico, potentially reducing overall shipping costs.
- Simplified clearance value limits increase, reducing the amount of documentation necessary. As a result, volumes of formal clearance decrease, lowering costs and increasing efficiencies.
- Quicker clearance for more shipments will result in higher customer satisfaction.
The agreement is recognized in Mexico as the Tratado entre Mexico, Estados Unidos y Canada (T-MEC) and in Canada as the Canada-United States-Mexico Agreement (CUSMA).
For more information about the new agreement rules, new requirements to certify the origin of the goods, including required Certification of Origin document options when necessary and new value thresholds visit fedex.com/usmca.
To learn more about the importance of trade to FedEx, visit fedex.com/trade.
About FedEx
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $69 billion, the company offers integrated business solutions through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 500,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. To learn more about how FedEx connects people and possibilities around the world, please visit about.fedex.com.
