Host: Lalo Solorzano and Trudy Wilson

In this episode of Simply Trade, Lalo Solorzano and Trudy Wilson return for another Trudy’s Trade Tips segment, shifting the conversation from Incoterms to USMCA and free trade agreements. The big message: you do not have to participate in a free trade agreement just because one is available.

Trudy explains why companies should pause before making USMCA or other FTA claims, especially if they do not have the proper documentation, qualification process, or internal controls in place. While free trade agreements can offer legitimate duty savings, they also come with responsibility. If your company claims preferential treatment, Customs can verify that claim, and you need to be ready to prove the goods qualify.

The episode also highlights why importers are not required to use a certificate just because they receive one, and why other duty-free provisions, such as Chapter 98, may sometimes be worth reviewing. Trudy closes with a key warning about USMCA preference criterion A: if you see it, challenge it.

This episode focuses on whether companies should participate in a free trade agreement, with special attention on USMCA. Trudy explains that FTAs can be valuable tools for reducing duty, but they should not be used casually or automatically.

A major point of discussion is the importance of supporting documentation. Companies that make USMCA claims must be able to prove that their products qualify under the agreement. If they cannot, they may be exposing themselves, and their customers, to verification risk.

Trudy also explains that importers have a choice. Even if a supplier provides a free trade agreement certificate, the importer does not have to use it. In some cases, another duty-free provision may be more appropriate, but those options also require documentation and proper reporting.

The conversation also introduces preference criteria, especially criterion A. Trudy warns that criterion A is often misunderstood and should only be used when every part, component, ingredient, or input can be traced back to the U.S., Mexico, or Canada.

• You do not have to participate in a free trade agreement simply because one is available.

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