September 13, 2018
A provision of the recently renegotiated North American Free Trade Agreement could lead to a growing market for U.S. merchants that sell into Mexico. The value of goods that can be imported tax-free from the U.S. to Mexico has been increased under the renegotiated NAFTA to $100. E-commerce between the two countries has been growing quickly.
According to PPRO, a London-based online payment provider, Mexican e-commerce grew 59 percent last year—one of the hottest markets in the world. Making it easier for U.S. companies to sell more expensive products into the markets could supercharge that growth, according to Steve Villegas, vice president of partner management and head of PPRO’s U.S. office.
“With Mexico being a neighboring country to the U.S., American goods and services are lucrative and attainable to the average Mexican consumer. Many are searching for those products online, presenting the country with a huge demand for e-commerce growth,” said Villegas. “This will only increase as a result of the NAFTA changes and to tap into international fast-growth markets like Mexico, cross-border merchants must look at how to adapt to different foreign markets and implement cross-border local payment schemes that speak to those consumers.”