Canada is the United States’ largest trading partner. The USMCA governs the majority of U.S.–Canada trade with duty-free treatment for qualifying goods. Over 85% of Canada–U.S. trade remains tariff-free under USMCA, which is explicitly exempt from Section 122 tariff overlays.
Successor to NAFTA, in force July 1, 2020. Comprehensive duty-free market access for qualifying goods, updated rules of origin for textiles and autos, enhanced IP protections, digital trade provisions, and a labor rapid-response mechanism. 2026 joint review is the most significant near-term North American trade event.
Mexico is the only garment-producing country in the Western Hemisphere whose goods enter the U.S. fully duty-free under current 2026 policy. USMCA is explicitly exempt from Section 122 tariff overlays. U.S.–Mexico trade was $798 billion in 2024.
In force July 1, 2020. Yarn-forward rules of origin apply to textiles and apparel. Labor rapid-response mechanism (RRM) has been invoked multiple times — labor compliance documentation is mandatory for Mexican exporters. 2026 review will address rules of origin, labor, agricultural schedules, and digital trade.
Guatemala concluded a new Agreement on Reciprocal Trade with the U.S. (Jan 2026), paving the way for duty-free framework access for qualifying CAFTA-DR apparel alongside its existing FTA membership.
Provides duty-free market access for qualifying goods. Yarn-forward rules of origin for textiles and apparel. A 10% Section 122 overlay currently applies despite CAFTA-DR compliance pending ART implementation.
Framework for duty-free access for qualifying CAFTA-DR apparel. Includes digital trade, IP, labor, and economic security commitments. Full implementation and tariff line details pending February 2026.
Provides protections for U.S. investors including national treatment, MFN status, fair and equitable treatment, and investor-state dispute settlement.
El Salvador concluded a new Reciprocal Trade Agreement with the U.S. (Jan 29, 2026) alongside Guatemala, positioning it for enhanced duty-free apparel access. Deep textile and manufacturing sector ties to U.S. supply chains.
Yarn-forward rules of origin for textiles and apparel. Section 122 overlay currently applies pending ART implementation.
Duty-free framework for qualifying CAFTA-DR apparel. Includes digital trade, IP protection, labor standards, and national security cooperation commitments.
Honduras is one of the largest apparel exporters in CAFTA-DR. NCTO is actively pushing for Honduras to receive a duty-free framework agreement similar to Guatemala and El Salvador.
Full implementation January 2025. Currently subject to 10% Section 122 overlay. Framework agreement anticipated but not yet finalized as of February 2026.
Protects U.S. investors with full investment life-cycle protections, ISDS, and MFN / national treatment guarantees.
Nicaragua holds CAFTA-DR membership but faces significant political risk. USTR opened a Section 301 investigation into Nicaragua’s labor rights, human rights, and rule of law practices in 2025.
Section 122 overlay (10%) applies. Nicaragua was not included in the new Reciprocal Trade Agreement framework due to political and rule-of-law concerns. Active USTR Section 301 investigation is a live trade action risk.
Costa Rica’s CAFTA-DR membership underpins its position as a U.S. supply chain partner in medical devices, electronics, and agricultural products. NCTO is lobbying for Costa Rica to receive a framework agreement.
Last CAFTA-DR country to implement. Full implementation January 2025. Section 122 overlay (10%) currently applies. Anticipated to receive framework agreement treatment similar to Guatemala and El Salvador.
The Dominican Republic is the only Caribbean nation in CAFTA-DR. It lost Mexico Cumulation eligibility in 2012. Framework agreement anticipated but not yet finalized as of February 2026.
Section 122 overlay (10%) currently applies. D.R. is not eligible for CARICOM TIFA or CBI/CBTPA programs (superseded by CAFTA-DR). Mexico Cumulation provisions unavailable since 2012 — limits Chapter 98 planning options.
Panama’s strategic importance extends to the Panama Canal — critical infrastructure for all U.S. imports from Asia. Trump administration pressure on canal management (Chinese investment in ports) creates geopolitical overlay on all Americas supply chains.
Provides duty-free or reduced tariff access for most U.S. exports and Panamanian imports. Section 122 overlay (10%) applies. Monitor U.S.–Panama political relations over canal management — a live supply chain risk factor independent of tariff policy.
The investment chapter of the Panama TPA provides comprehensive investor protections including ISDS, national treatment, and MFN guarantees, superseding the original 1991 BIT.
Belize benefits from both the CARICOM TIFA framework and CBI/CBTPA preferential access for most goods.
Belize benefits from duty-free access under CBERA for most goods and enhanced apparel access under CBTPA. Sugar, citrus, bananas, and marine products are primary trade sectors.
Belize participates in the U.S.–CARICOM TIFA Trade and Investment Council, providing structured dialogue on market access, IP, labor rights, and capacity building.
The United States engages the Caribbean Community (CARICOM) through a collective Trade and Investment Framework Agreement (TIFA). The TIFA Trade and Investment Council (TIC) holds regular sessions on market access, IP, labor rights, food security, and capacity building. Most CARICOM members are also beneficiaries of the Caribbean Basin Initiative (CBI) preference programs.
Haiti’s trade relationship is anchored by HOPE/HELP preference programs — over 90% of Haiti’s $844M annual apparel export earnings. Programs lapsed Sept 30, 2025 and were retroactively restored February 3, 2026. Retroactive duty refund deadline: August 2, 2026.
Duty-free access for Haitian apparel via HTS Chapter 98 Subchapter XX using SPI “D” designation. Restored through December 31, 2026 under H.R.7148. Retroactive refunds available for duties paid Oct 1, 2025 – Feb 3, 2026 — FILE BY AUGUST 2, 2026. Extensions to 2028 (H.R.6504) and 2035 (H.R.1625/S.742) pending in Congress.
Haiti also benefits from CBI/CBTPA preferential access for non-apparel goods.
One of the oldest U.S. BITs in the hemisphere. Provides investor protections for U.S. businesses operating in Haiti.
Jamaica is one of the Caribbean’s largest economies and a key CBI/CBTPA apparel and agricultural producer. Benefits from both the collective CARICOM TIFA framework and individual BIT protections.
Duty-free access for most goods under CBERA; enhanced apparel access under CBTPA. Jamaica is a leading CBTPA beneficiary for apparel exports. Major sectors: bauxite/alumina, agriculture, apparel, tourism services.
Provides national treatment, MFN, fair and equitable treatment, and ISDS protections for U.S. investors in Jamaica.
Trinidad and Tobago is the Caribbean’s most industrialized economy — a major LNG and petrochemical exporter. Benefits from CBI preferences and bilateral investment protection.
T&T receives duty-free access under CBERA for most goods. Energy and petrochemical exports are primary trade sectors.
Protects U.S. investments in T&T’s energy and industrial sectors with full ISDS, national treatment, and MFN protections.
Barbados benefits from CBI/CBTPA duty-free access for most goods. Tourism, financial services, and light manufacturing are core economic sectors. Enhanced apparel access available under CBTPA.
Grenada benefits from CBI/CBTPA duty-free access. Spices, nutmeg, agriculture, cocoa, and light manufacturing are primary trade sectors.
One of the oldest U.S. BITs in the Caribbean. Provides investor protections for U.S. businesses in Grenada.
Guyana is the Caribbean’s fastest-growing economy following major offshore oil discoveries. Benefits from CBI preferences and has growing strategic energy partnership interest with the U.S.
Guyana benefits from CBI duty-free access for most goods. Sugar, rice, gold, timber, and increasingly energy products are primary trade sectors. Oil exports from offshore fields face separate treatment under Section 232 energy provisions.
The Bahamas benefits from CBI duty-free access for most goods. Financial services and tourism dominate the economy. The Bahamas is a CARICOM associate member and participates in the TIFA framework.
Saint Lucia benefits from CBI/CBTPA duty-free access. Bananas, tourism services, and financial services are core sectors.
Suriname benefits from CBI duty-free access. Gold, oil, bauxite, and agricultural products are primary export sectors. Growing offshore energy sector with strategic U.S. interest.
Colombia is one of only a handful of Latin American countries still trading more with the U.S. than with China — a critical strategic distinction. Section 122 10% overlay currently applies despite the active FTA.
Eliminated most bilateral tariffs. Major Colombian exports: textiles and apparel, coffee, pharmaceutical inputs, cut flowers, tropical fruits. Section 122 10% overlay currently applies. Colombia is deepening China trade ties in response to U.S. tariff uncertainty — monitor bilateral relationship closely.
Peru holds a comprehensive FTA with the U.S. and is a major copper and gold exporter. Section 232 copper tariffs (25%+) create significant additional exposure for Peruvian industrial exports beyond the Section 122 overlay.
Eliminated tariffs on most bilateral goods. Peru is part of the Andean lithium and copper belt. For copper and metals — Section 232 tariffs (25%+) apply separately from Section 122. Always calculate the full tariff stack for metal-intensive Peruvian imports.
Chile’s FTA with the U.S. (2004) is one of the oldest in the hemisphere. As the world’s largest copper producer and central to the lithium triangle strategy, Chile faces Section 232 copper tariff exposure (25%+) alongside the Section 122 overlay.
Eliminated tariffs on most U.S.–Chile bilateral goods. Key Chilean exports: copper, lithium, salmon, wine, agricultural products. Section 122 10% overlay applies. Section 232 copper tariffs (25%+) apply separately. Chile is the strategic anchor of the lithium triangle (with Argentina and Bolivia).
Argentina concluded a new Agreement on Reciprocal Trade and Investment with the U.S. in February 2026 — the most significant bilateral trade development in South America this year. Argentina’s economic reform program under President Milei created the diplomatic opening.
Includes targeted duty-free treatment for qualifying Argentine exports (beef, agricultural products, critical minerals) and comprehensive market access commitments for U.S. exporters. Full tariff schedules published alongside the agreement.
A complex BIT history including disputes during Argentina’s 2001–2002 economic crisis. Provides investor protections including ISDS for U.S. businesses in Argentina.
Ecuador is covered by U.S. Protocols on Trade Rules and Transparency and received targeted duty-free treatment for bananas and cocoa as part of 2025–2026 bilateral framework agreements.
High-standard commitments on trade facilitation, customs administration, good regulatory practices, anti-corruption, and an SME annex. Serves as a TIFA-equivalent framework.
Targeted duty-free treatment for Ecuador’s banana and cocoa exports announced as part of USTR’s Americas reciprocal trade initiative. Full bilateral framework under development.
Uruguay is covered by U.S. Protocols on Trade Rules and Transparency. A stable, well-governed economy with significant agricultural exports to the U.S. Section 122 10–15% overlay applies on most goods.
Provides structured bilateral framework for trade facilitation, customs administration, good regulatory practices, and anti-corruption. Foundational framework for U.S.–Uruguay relations in absence of a full FTA.
Brazil is the Western Hemisphere’s highest-uncertainty trade environment. No bilateral FTA. Section 122 (10–15%) applies plus Section 232 steel tariffs (50%) on steel products. Active USTR Section 301 investigation into Brazil’s digital trade, ethanol, IP, and deforestation practices.
The U.S. and Brazil maintain limited trade consultation mechanisms. No comprehensive FTA exists. Brazil is a MERCOSUR member; U.S.–MERCOSUR negotiations have been historically stalled. Brazil holds world’s third-largest rare earth reserves — creating a critical minerals paradox despite political tensions. Despite U.S. running $7B trade surplus with Brazil in 2024, tariff burden is elevated.
Bolivia has no active FTA or BIT with the United States. Bolivia’s original BIT (1998) was terminated by Bolivia in 2012. Bolivia holds the world’s largest lithium reserves — making it strategically important for critical minerals policy despite absence of formal bilateral agreements.
U.S.–Bolivia trade operates on standard WTO MFN terms plus Section 122 (10–15%) overlay. Bolivia’s nationalization policies and ICSID withdrawal have made investment protection a challenge for U.S. investors. The lithium triangle (Bolivia, Argentina, Chile) is a growing focus of U.S. critical minerals strategy.
Paraguay is a MERCOSUR member with no comprehensive FTA with the U.S., but maintains a bilateral investment treaty. Paraguay is a significant soy and beef exporter and the world’s fourth-largest electricity exporter (from Itaipú).
Provides protections for U.S. investors including national treatment, MFN status, and ISDS. Section 122 overlay applies to most Paraguayan exports to the U.S.
Venezuela is subject to comprehensive U.S. sanctions administered by OFAC. No normal bilateral trade occurs. Any engagement requires specific OFAC licensing. Highest-risk trade environment in the Western Hemisphere.
Multiple Executive Orders impose comprehensive sanctions. OFAC General Licenses provide limited exceptions for humanitarian activities. All trade and investment requires OFAC review and licensing.