The US proposed to Mexico and Canada to raise the value of online purchases that can be imported free of tax at the level of USD 800, from current thresholds of USD 50 and CAD 20. Footwear, textiles and bricks-and-mortar retail industries in Mexico and Canada oppose though to the proposal.
Mexico is worried that in this way cheap imports from Asia could flood the market. Canadia also fears that ecommerce companies will undercut their prices.
NAFTA is much criticised by the Trump Administration because it is considered to have damaged US manufacturing as companies shifted production to Mexican factories with cheaper labor, creating a US trade deficit with Mexico worth more than USD 60 billion.
In regards to the new proposal from the US, Mexico and Canada want online retailers to prove that their products are made in North America to be exempted from duties levied on other imports.
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