Mexico and Canada are critical trading partners of the United States; a fact that won’t change anytime soon. However, navigating the challenges resulting from recent events requires a steady, ongoing partnership between the USA, Canada, and Mexico but also between manufacturers, logistics service providers, and cross-border trucking whose daily efforts are responsible for billions in annual trade deals.
US companies that are involved in cross-border manufacturing and trade with Mexico have to overcome different challenges since 2019 from the tariff threats to the impact of coronavirus pandemic on the supply chain, challenges of restarting idled manufacturing, and the implementation of the United States-Mexico-Canada Agreement (USMCA).
The agreement that took effect on July 01, 2020, hopes to create a mutually beneficial, more balanced, reciprocal trade to support the growth of the North American economy. Many Americans are not aware of how reliant the US economy is on Mexico. Mexico has surpassed China as the US trading partner when it exported $358 billion worth of goods to the USA. Cross-border trucking providers are also heavily reliant on the supply chain that straddles the US-Mexican border.
Restarting a large, complex, and intertwined trading relationship between the USA and Mexico is particularly challenging even under the best circumstances. There is still a pandemic that is seriously affecting North America. Meanwhile, the USMCA will provide more benefits to shippers compared to the original NAFTA.
Businesses that are new to the Canadian and Mexico markets will benefit from the lower costs of shipment value levels. US express delivery carriers will also benefit from lower costs and improved efficiency. By increasing the de minimis values, SME’s can easily take part in cross-border trade.
However, restarting normal trade is still challenging because of the Covid-19-related closures. While the US and Mexican governments have provided guidance to ensure that critical infrastructure like manufacturing is up and running, there is little synchronization between the two nations.
Titan Transline is your best option for a dedicated and reliable transport across North America. The one-stop 3PL provider has years of experience in cross-border logistics to ensure that your goods will arrive on time. The reliable team understands the importance of your goods which is why every shipment is handled with care.