What is nearshoring to Free Trade Agreement Countries?

Nearshoring to Free Trade Agreement (FTA) countries involves relocating business processes or manufacturing operations to countries that have a free trade agreement with the company's home country. This strategy is often adopted to take advantage of the benefits offered by FTAs, such as reduced tariffs, simplified customs procedures, and improved market access. Companies in the U.S. might nearshore to Mexico or Canada to take advantage of the USMCA.