Skip to content

The Advocacy Zone: NAFTZ Members Bring FTZ Priorities to Capitol Hill at 2026 Legislative Summit

The Advocacy Zone: NAFTZ Members Bring FTZ Priorities to Capitol Hill at 2026 Legislative Summit

On February 25, 2026, NAFTZ members will take part in Congressional Visits during the NAFTZ Legislative Summit, with a clear goal: strengthen relationships with lawmakers and staff, reinforce understanding of the U.S. Foreign-Trade Zones program, and build support for practical policy solutions that protect U.S. manufacturing, distribution, and jobs.

At the center of this year’s message is a simple point: the U.S. FTZ program is a longstanding, Congress-created economic development tool that helps U.S. companies invest domestically, operate more efficiently, and compete globally. Member meetings are built to connect those policy fundamentals to real operational examples from each participant’s company and region. NAFTZ is encouraging members to tailor every conversation with district- and state-specific impact stories, including employment footprint and investment outcomes.

Educating Congress about the Value of the U.S. FTZ Program

A key part of the day is making sure offices understand how the FTZ program works in practice. FTZs are secure, physical locations in the United States, operating under U.S. Customs and Border Protection supervision and treated as outside U.S. commerce for customs entry purposes. U.S. FTZs are highly regulated, compliance-driven environments, fundamentally different from loosely regulated “free zones” in other countries.

U.S. FTZ procedures help companies manage cash flow, logistics timing, and customs processes while supporting domestic job creation and operational growth. The program’s value is not theoretical—it shows up in factories, warehouses, payrolls, and export performance across the country.

2024 Economic Snapshot: Scale and National Reach

The latest available data in this year’s messaging underscores the program’s scale:

  • 1,300 active FTZ operations nationwide, with at least one in every state and Puerto Rico
  • 381 production operations, accounting for 61% of total zone activity
  • More than 543,000 direct American jobs supported by U.S. FTZ operations
  • $133 billion in exports, representing 6.5% of total U.S. exports

During Congressional Visits, this national data will be paired with local impact examples so offices can connect broad program outcomes with businesses and workers in their own districts and states.

Policy Priority 1: Remove Blanket PF Status Restrictions Tied to Trade Remedy Actions

One of NAFTZ’s major policy concerns this year is the blanket requirement, imposed through recent trade remedy actions, that goods subject to those remedies enter FTZs under Privileged Foreign (PF) status. Under that approach, tariff rates are effectively locked at admission rather than at withdrawal.

NAFTZ’s position is that this broad restriction undermines core program objectives. The PF requirement effectively wipes out tariff inversion relief. That means companies lose access to the lower finished-goods duty rate and are forced to pay higher duties on inputs, resulting in devastating cost increases. Those added costs ripple through operations—raising production costs, squeezing margins, and making it harder to keep manufacturing activity in the United States.

The policy ask to Congress is direct: encourage engagement with the Administration on a technical fix that removes the blanket PF-status requirement for goods covered by trade remedy tariffs. NAFTZ members are framing this as both a competitiveness issue and a jobs issue—arguing that restoring workable FTZ treatment would help U.S.-based manufacturers absorb cost pressures, retain operations domestically, and continue supporting American workers.

Policy Priority 2: Correct USMCA-Related FTZ Disadvantages

The second major Congressional Visits theme is USMCA implementation and its uneven impact on U.S. FTZ manufacturers. Current USMCA-related restrictions require U.S. FTZ manufacturers to pay U.S. duties on non-originating components in goods exported to Canada and Mexico. NAFTZ argues this conflicts with a core FTZ export-promoting principle: eliminating domestic duty burdens on components in products manufactured in FTZs and then exported.

NAFTZ is also highlighting that current implementing language limits how FTZ manufacturers can use USMCA rules of origin to improve competitiveness in North American markets. Together, these provisions can put U.S.-based FTZ producers at a disadvantage compared with competitors in Canada and Mexico.

In the House, NAFTZ is asking offices to cosponsor H.R. 6792, introduced to modify USMCA implementing language and the FTZ Act to address this imbalance. In the Senate, the ask is to consider leading a companion measure. For all offices, NAFTZ is urging support for including FTZ-related fixes in USTR’s USMCA review and negotiation objectives. With USMCA review activity ahead, members are presenting this as a timely opportunity to modernize policy and level the playing field for U.S. manufacturers.

Member-Led Engagement with Practical Credibility

NAFTZ’s advocacy approach is grounded in the fact that the U.S. Foreign-Trade Zone program is a congressionally established and authorized tool designed to support American jobs, domestic investment, and global competitiveness.

Our role is not to debate broad trade policy, but to ensure policymakers understand how FTZs advance national economic objectives and to address unintended consequences that may affect U.S. operations.

We focus on practical, program-specific solutions and maintain constructive relationships with policymakers and regulators across administrations. This balanced approach allows NAFTZ to effectively represent the interests of the FTZ community while preserving the access and credibility necessary to achieve results.

This year’s Congressional Visits reinforce a broader message: when the FTZ community shows up united, data-informed, and solution-oriented, policymakers listen. NAFTZ members are bringing a clear case to Capitol Hill—protect and modernize proven FTZ tools so U.S. operations can keep investing, producing, exporting, and employing in communities across the country.

Powered By GrowthZone