US foreign-trade zones take in $963.8B — and still pay duties Canada avoids

US foreign-trade zones handled $963.8 billion in merchandise in 2024 — and manufacturers inside them can still pay duties on goods their Mexican and Canadian competitors ship duty-free. That's the paradox the National Association of Foreign-Trade Zones wants Congress to close.

NAFTZ President Jeff Tafel said the association is pressing lawmakers to eliminate a longstanding duty disadvantage facing American manufacturers exporting to Mexico and Canada under the USMCA. Under current rules, FTZ-based manufacturers can be required to pay duties on imported components used to make finished goods later exported to Mexico or Canada — even when those products qualify for preferential USMCA treatment.

"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.

Competitors in Mexico and Canada, by contrast, have access to duty-relief programs that can eliminate comparable costs. "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."

What would the fix change?

NAFTZ backs two companion bills: the Foreign-Trade Zone Export Enhancement Act of 2025 (H.R. 6792), introduced by Rep. Lance Gooden, and its 2026 Senate counterpart (S. 4793) from Sen. Tim Scott. Both would grant duty relief for qualifying merchandise made or altered in US foreign-trade zones and then exported to Mexico or Canada.

Tafel argues Congress shouldn't wait for the USMCA review to wrap. "American manufacturers shouldn't have to wait for that process to conclude before this longstanding competitive disadvantage is addressed," he said.

Recent tariff actions complicate matters further. Some now require imported merchandise to enter FTZs under "privileged foreign" status, which limits traditional duty advantages. The zones still offer deferral, streamlined customs and inventory efficiencies — just less of a bargain than before.

Texas runs the FTZ league table

The stakes are considerable. According to the Foreign-Trade Zones Board's 2024 Annual Report to Congress, released November 2025, FTZs received $963.8 billion in merchandise in 2024, up 1.6% from $948.8 billion in 2023. Exports, however, fell 10.3% to $133.5 billion from $148.8 billion.

The program supported nearly 543,000 jobs across roughly 1,300 active operations, including 381 production operations. Production activity accounted for about 61% of merchandise received, led by automotive manufacturing, oil refining, machinery and pharmaceuticals.

Texas ranked first nationally in both merchandise received and exports, anchored by Houston, Laredo, El Paso, McAllen and Brownsville. El Paso's FTZ Nos. 68 and 150 ranked third and fourth among warehouse and distribution zones for exports; McAllen's FTZ No. 12 was seventh, Brownsville's FTZ No. 62 eighth, and Laredo's FTZ No. 94 fourteenth.

Metric	2023	2024	Change
Merchandise received	$948.8B	$963.8B	+1.6%
Exports	$148.8B	$133.5B	-10.3%
Production merchandise	$584.9B	$589.8B	+0.8%
Warehouse/distribution	$363.9B	$374.0B	+2.8%
Active FTZs	200	199	-0.5%

What does the uncertainty change for shippers?

Along the border, FTZ operators report companies rethinking sourcing, freight volumes, warehousing and transport networks. Some are weighing whether to relocate manufacturing or distribution across the border at all.

"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.

He cautions that talk isn't yet action — but capital decisions are hard to reverse. "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."

Mexico sends 826 National Guard officers to the highways

Separately, Mexico's National Guard plans to deploy 826 additional officers for highway surveillance after nationwide truck-driver protests demanding protection from cargo theft, violence and extortion.

The deployment was announced at a Nov. 5 meeting between federal authorities and trucking representatives, per T21. Lauro Rincón Hernández, president of FEMATRAC, said the officers are finishing training at the San Luis Potosí Police Academy and should deploy within days.

The move follows an Oct. 26 nationwide trucking strike. Industry groups flagged nine problem states — the State of Mexico, Puebla, Nuevo León, Jalisco, Veracruz, Querétaro, Guanajuato, Tlaxcala and Tabasco — and requested permanent patrols plus continuation of Operation Enjambre in high-crime areas. Further meetings with security officials and federal prosecutors are planned, with truckers seeking measurable results before year's end.

Ametek bets $25M on the border

US-based Ametek Inc. (NYSE: AME) will invest $25 million to expand in Reynosa and Nuevo Laredo, creating 650 jobs, Tamaulipas' Ministry of Economy announced Nov. 5. Reynosa gets 400 jobs, Nuevo Laredo 250. Ametek already employs about 2,600 workers in Reynosa and roughly 22,900 worldwide across 150 locations.

No construction timeline was disclosed. The Berwyn, Pennsylvania company supplies precision components for medical devices, aerospace and semiconductors — and its bet suggests at least one manufacturer isn't waiting on Washington to settle the tariff question.