Unwrapping the USMCA: Understanding Duty-Free Status for Packaging Manufacturers

The United States-Mexico-Canada Agreement (USMCA) continues to reshape North American trade by reducing border friction and creating new opportunities for manufacturers operating across the region. One of its most valuable features is the duty-free status, which allows qualifying goods to move between the U.S., Mexico, and Canada without tariffs. Packaging manufacturers—especially those serving fast-moving, temperature-sensitive supply chains—can play a vital role in supporting the U.S. market.

What Does Duty-Free Status Mean Under USMCA?

Duty-free status means qualifying goods traded between the USMCA member countries are exempt from tariffs, encouraging stronger economic integration and more resilient supply chains. The agreement, which replaced the North American Free Trade Agreement (NAFTA), modernised trade rules to support current industries and cross-border logistics.

According to July 2025 data from the United States Census Bureau, Mexico is currently the top exporter to the U.S., with Canada ranking second. This highlights the strength and importance of North American manufacturing networks.

For qualifying goods, the absence of tariffs means lower costs, faster movement, and greater flexibility. Companies sourcing from or supplying to North American neighbours benefit from reduced overheads and easier market access—ultimately leading to lower prices for consumers.

Disruptive Packaging’s Manufacturing & Closed-Loop Recycling

Disruptive Packaging’s advanced facility in Mexicali, Baja California, is purpose-designed and strategically located to maximise the advantages offered by the USMCA. The plant produces URTHCOR® high-performance packaging for the fresh produce and seafood sectors, catering to the rising demand for more sustainable products in the North American market. 

But manufacturing is only half the story.

Seamless Supply Chain Access into the United States

Located just minutes from the U.S. border, Disruptive Packaging’s Mexicali facility ensures a smooth supply chain and enables faster delivery of products. This logistical advantage is amplified by the duty-free status, which simplifies import processes.

For American seafood and produce operators, this means a dependable, nearshore supply of high-quality packaging that is both cost-effective and a more sustainable alternative to conventional packaging.

Looking Ahead

As cross-border trade evolves, understanding agreements like the USMCA will be vital for decision-makers seeking to navigate this changing landscape successfully.

The USMCA continues to create opportunities for companies that can align operational efficiency with sustainability. Disruptive Packaging’s nearshore manufacturing and closed-loop recycling facility is a prime example of how companies can effectively utilise this agreement—not only to supply today's customers but also to play a significant role in promoting a sustainable future.