Support continues to grow for legislation aimed at correcting the USMCA duty deferral restriction that disadvantages U.S. FTZ manufacturers exporting to Canada and Mexico.

Most recently, Representative Henry Cuellar signed on as a cosponsor of H.R. 6792, “Foreign-Trade Zone Export Enhancement Act of 2025,” marking another positive step forward. His support followed direct advocacy by NAFTZ members during the 2026 Legislative Summit in Washington, D.C., where participants met with the Congressman to explain the real-world impact of the current restriction on U.S. FTZ operations. All of the meetings that week reinforced the need for a legislative fix and highlighted the value of members bringing their U.S. FTZ stories directly to Capitol Hill.

NAFTZ built on that momentum during the week of March 30 with three days of additional office visits focused on Ways and Means Committee members that the association has had fewer opportunities to engage in recent years. The purpose of the meetings was to continue educating staff of the committee members on the need for the bill and to explore whether there may be an opening for committee consideration.

The outreach was productive and well received. Notably, no opposition to the bill was expressed in any of the offices visited. Instead, the meetings served as an important opportunity to educate committee staff about a highly technical issue that is often not well understood outside the U.S. FTZ community. In many cases, staff were hearing the practical impact of the restriction for the first time and were receptive to learning why the current treatment creates an unfair and counterproductive result for U.S. FTZ manufacturers.

As many members know, the existing USMCA duty deferral rule requires U.S. FTZ manufacturers to pay duties on non-originating components contained in finished goods exported from a U.S. FTZ to Canada or Mexico. That outcome runs directly against one of the core purposes of the U.S. Foreign-Trade Zones program: strengthening U.S. production and exports by reducing unnecessary duty costs. The legislation would address that problem by removing this duty burden in those export scenarios and helping restore the competitiveness of U.S. facilities serving North American markets.

At the same time, the broader legislative picture in Washington remains uncertain. It is still unclear when the Ways and Means Committee may take up trade-related matters. A partial government shutdown remains underway, and discussions continue around the possibility of another reconciliation package. Those broader issues could affect the timing and focus of committee activity in the weeks ahead.

Even so, the recent meetings confirmed that continued education on this issue is both necessary and worthwhile. NAFTZ will continue advancing this message and looking for opportunities to move the legislation forward.

U.S. FTZs that export to Canada or Mexico and would benefit from this legislative fix are encouraged to contact NAFTZ Director of Advocacy, Melissa Irmen, at Mirmen@NAFTZ.org  to share their experiences. Real-world examples are critical to strengthening the case for congressional action and showing exactly how this change would help U.S. operations compete more effectively.