Cross border trade between Mexico and the United States has received a welcome boost. One aspect of the new trade agreement between the two neighbours is an increase in the duty free rate for Mexican imports from the States. Mexico will be raising its ‘de minimis’ threshold from $50 to $100. That’s the value of goods Mexicans can import from the US without having to pay any duties.
This change will have a tangible impact for ecommerce merchants based in the United States who ship to Mexico and eBay has welcomed the change with a statement:
We are happy to report that this week Mexico announced that it would double its de minimis threshold from $50 to $100 as part of a revised trade agreement with the U.S. This decision is a positive step forward for promoting trade and economic opportunities for small businesses. eBay believes that lowering trade barriers is critical to supporting small business growth and creating more access to goods for buyers on a global basis. We will continue to advocate for higher de minimis levels on behalf of our customers.
– eBay
Sometimes, international trade talks can seem distant and unimportant, even to merchants who trade internationally. So this is a good example of how new treaties can have a tangible impact on everyday ecommerce. We will see the terms of trade and exports change in the months to come, especially with regards to the EU. But other changes are under way and the President of the United States Donald Trump is the catalyst.
In terms of North American trade, he is recasting the landscape under which the USA and Mexico trade and there is a strong possibility that there will be a new agreement with Canada too in the coming months. Controversially, Trump has also threatened to withdraw from the World Trade Organisation (WTO) and he continues to use trade as a diplomatic tool with Russia and China.
