Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week in Borderlands Mexico: US foreign-trade zones push to fix USMCA tariff obstacles; Mexico to deploy 826 National Guard officers to boost highway security; and Ametek to invest $25M in Mexico border expansions, add 650 jobs.
U.S. manufacturers operating in foreign-trade zones face growing competitive pressures from tariffs and trade policies that can leave them paying duties their counterparts in Mexico and Canada avoid.
Jeff Tafel, president of the National Association of Foreign-Trade Zones, said the association is pressing Congress to eliminate longstanding duty disadvantages affecting American manufacturers exporting goods to Mexico and Canada under the United States-Mexico-Canada Agreement (USMCA).
The push comes as businesses across North America reassess sourcing, manufacturing investments and distribution strategies amid uncertainty surrounding tariffs and the ongoing USMCA review.
“One of the most significant competitive disadvantages facing U.S. FTZ manufacturers involve the treatment of goods exported to Canada and Mexico under USMCA,” Tafel told FreightWaves.
Under current rules, manufacturers operating in U.S. foreign-trade zones can be required to pay duties on imported components used to produce finished goods subsequently exported to Mexico or Canada, even when those products qualify for preferential treatment under USMCA.
Competing manufacturers in Mexico and Canada, meanwhile, have access to duty-relief programs that can eliminate comparable costs, Tafel said.
“The result is an uneven playing field,” Tafel said. “A U.S. manufacturer can face costs that its North American competitors avoid simply because it chose to manufacture in the United States.”
NAFTZ backs legislation to eliminate duty disadvantage
NAFTZ is supporting two bills aimed at addressing the disparity: the Foreign-Trade Zone Export Enhancement Act of 2025 (H.R. 6792), introduced by Rep. Lance Gooden, and the Foreign-Trade Zone Export Enhancement Act of 2026 (S. 4793), introduced by Sen. Tim Scott.
The companion measures would provide duty relief for qualifying merchandise manufactured or altered within U.S. foreign-trade zones and subsequently exported to Mexico or Canada.
Tafel said Congress should address the issue without waiting for the USMCA review to conclude.
“American manufacturers shouldn’t have to wait for that process to conclude before this longstanding competitive disadvantage is addressed,” Tafel said.
He described the proposed legislation as a targeted solution that would support U.S. manufacturing and improve the competitiveness of American exports.
Foreign-trade zones are designated areas under U.S. Customs and Border Protection supervision where companies can store, assemble, manufacture and distribute merchandise under special customs procedures.
The program allows businesses to defer duties on imported goods until they enter U.S. commerce, while certain goods exported from FTZs can qualify for duty exemptions.
However, Tafel said some recent tariff actions require imported merchandise to enter FTZs under “privileged foreign” status, which can limit traditional duty advantages.
Despite those restrictions, he said FTZs continue to provide benefits through duty deferral, streamlined customs procedures and inventory management efficiencies.
Texas leads nation in foreign-trade zone activity
The economic importance of foreign-trade zones is reflected in the latest available federal statistics.
According to the U.S. Foreign-Trade Zones Board’s 2024 Annual Report to Congress, released in November 2025, FTZ operations nationwide received $963.8 billion in merchandise during 2024, compared with $948.8 billion in 2023.
Exports from FTZ operations totaled $133.5 billion, down from $148.8 billion the previous year.
The program supported nearly 543,000 jobs across approximately 1,300 active operations, including 381 production operations.
Texas ranked first nationally in both merchandise received and exports from FTZ operations in 2024, according to the report.
The state’s FTZ network includes major trade gateways such as Houston, Laredo, El Paso, McAllen and Brownsville.
El Paso’s FTZ Nos. 68 and 150 ranked third and fourth nationally, respectively, among warehouse and distribution zones for exports, while McAllen’s FTZ No. 12 ranked seventh and Brownsville’s FTZ No. 62 ranked eighth.
Laredo’s FTZ No. 94 ranked 14th in the same category, highlighting the importance of foreign-trade zones to Texas’ cross-border distribution network.
The federal report also found that production operations accounted for approximately 61% of merchandise received by FTZs nationwide in 2024, with automotive manufacturing, oil refining, machinery and pharmaceuticals among the largest industries.
Tariff uncertainty complicates US-Mexico supply chains
The tariff challenges are particularly significant along the U.S.–Mexico border, where manufacturers, logistics providers and distribution operators rely on closely integrated cross-border supply chains.
Tafel said FTZ operators are hearing from companies evaluating changes to sourcing, freight volumes, warehousing requirements and transportation networks.
Some businesses are also considering whether to relocate manufacturing or distribution operations across the border.
“What we’re hearing from FTZ grantees along the border is that companies continue to struggle with how to plan for that uncertainty,” Tafel said.
“They’re evaluating a range of considerations, including sourcing decisions, freight volumes, warehousing needs, inventory management, transportation patterns, and even whether to relocate manufacturing or distribution operations across the border.”
Tafel cautioned that those discussions do not necessarily mean companies have already changed their operations.
However, he said uncertainty is becoming a significant factor in decisions involving major capital investments.
Relocating an existing manufacturing facility or establishing a new distribution center can require substantial financial commitments, making those decisions difficult to reverse even if trade policies subsequently change.
“The concern isn’t simply whether companies relocate existing operations, but how today’s uncertainty influences where they choose to make their next major investment,” Tafel said.
“Those decisions can have lasting consequences for American manufacturing, investment, and jobs well beyond the current trade cycle.”
Supporting data: U.S. foreign-trade zones
| Metric | 2023 | 2024 | YoY change |
| Merchandise received | $948.8B | $963.8B | +1.6% |
| Exports | $148.8B | $133.5B | -10.3% |
| Production merchandise received | $584.9B | $589.8B | +0.8% |
| Warehouse/distribution merchandise received | $363.9B | $374.0B | +2.8% |
| Active FTZs | 200 | 199 | -0.5% |
Mexico to deploy 826 National Guard officers to boost highway security
Mexico’s National Guard plans to deploy 826 additional officers to strengthen highway surveillance following nationwide protests by truck drivers demanding greater protection from cargo theft, violence and extortion.
The deployment was announced during a Nov. 5 meeting between federal authorities and trucking industry representatives, according to Mexican transportation publication T21.
Lauro Rincón Hernández, president of the Mexican-American Federation of Transporters (FEMATRAC), said the officers are completing training at the San Luis Potosí Police Academy and are expected to begin deploying in the coming days. No specific deployment date was announced.
The meeting followed an Oct. 26 nationwide trucking strike in which transportation groups demanded stronger government action against cargo theft, highway insecurity and alleged abuses by authorities.
Trucking representatives identified nine states as particularly problematic for highway security: the State of Mexico, Puebla, Nuevo León, Jalisco, Veracruz, Querétaro, Guanajuato, Tlaxcala and Tabasco.
Industry groups also requested permanent National Guard patrols and changes to security strategies in high-crime areas. Authorities discussed continuing Operation Enjambre, or Operation Swarm, in municipalities and states experiencing elevated criminal activity.
Additional meetings are planned with security officials and federal prosecutors, with trucking organizations seeking measurable improvements before the end of the year.
Ametek to invest $25M in Mexico border expansions, add 650 jobs
U.S.-based manufacturer Ametek Inc. (NYSE: AME) plans to invest $25 million to expand its operations in Reynosa and Nuevo Laredo, Mexico, creating 650 jobs across the two border cities.
The expansion will add 400 jobs in Reynosa, across the border from McAllen, Texas, and 250 jobs in Nuevo Laredo, across from Laredo, Texas, according to a Nov. 5 announcement from the Tamaulipas Ministry of Economy.
Ametek currently employs about 2,600 workers at its Reynosa operations. The company did not disclose a construction timeline or specify when the new positions would be filled.
Ametek, headquartered in Berwyn, Pennsylvania, specializes in precision components and technology solutions serving industries including medical devices, aerospace and semiconductors. The company currently has 22,894 employees worldwide.
The company operates 150 locations — including more than 100 manufacturing facilities and over 100 sales and service centers.
Why it matters: Unequal duty treatment could influence where manufacturers invest, establish production facilities and move freight across North America.
