The increase of US$50 to 100 for the amount that can be imported into Mexico via e-commerce or parcel franchises without tariffs from the U.S. could harm some domestic industries, like clothing, footwear and toys, warned businessmen.
“Definitely certain sectors, specifically textiles and those whose products are under $100, are in serious disadvantage, because they will not have to pay VAT, import taxes and will not have to comply with the Mexican standard,” explained Juan Carlos Garcia, global director of e-commerce of Elektra and former CEO of Amazon Mexico.
If the rule comes into effect, U.S. products worth no more than US$100 would enter Mexico duty-free and with only minimal entry procedures. According to officials, industries such as clothing, footwear and toys could be some of those affected.
“(We are worried) because we have not been able to comply with the current rules, so if you extend the franchise to US$100, but the franchise is not controlled, we believe we would be benefiting consumers, but at the same time we would be damaging those who do pay taxes,” Garcia said.
The negotiation took place as part of the North American Free Trade Agreement (NAFTA) in which the U.S. asked to increase a franchise to US$800.