NAFTZ Celebrates the Establishment of the Congressional U.S. Foreign-Trade Zones Caucus

The National Association of Foreign-Trade Zones (NAFTZ) has expressed its strong support for the formation of the bipartisan Congressional U.S. Foreign-Trade Zones (FTZ) Caucus. This initiative, spearheaded by Congressman Aaron Bean (R-Fla.) and Congresswoman Marilyn Strickland (D-Wash.), aims to bolster U.S. manufacturing strength, safeguard domestic employment, and enhance secure supply chains through the existing framework of the FTZ program.

Established in 1934, the U.S. FTZ program provides crucial incentives for companies to engage in manufacturing and distribution within the United States, effectively countering tariff advantages held by foreign competitors. Goods housed in FTZs are not classified as part of U.S. Customs territory, meaning that import duties and tariffs can be deferred until those goods enter the domestic market. In the year 2024, operations within FTZs provided jobs for over 543,000 Americans, contributing around 6.5% to the nation's overall export output.

Jeffrey J. Tafel, the president of NAFTZ, highlighted the economic significance of the FTZ program: "U.S. Foreign-Trade Zones are one of the nation's most effective and underappreciated economic development tools. We applaud the bipartisan efforts of Representatives Bean and Strickland in forming the U.S. Foreign-Trade Zones Caucus. This initiative represents a shared understanding of the FTZ program as an effective means to reinforce manufacturing in America, create jobs, and encourage domestic investments."

In light of current national concerns surrounding supply chain security and trade policy modernization, NAFTZ has actively collaborated with Congress, federal agencies, and industry representatives to advocate for policies that amplify the U.S. FTZ program's effectiveness and maintain global competitiveness for U.S.-based manufacturers. The establishment of this caucus is viewed as a strategic opportunity to provide policymakers with educational resources and briefings regarding the operation and economic impact of FTZs across the nation.

In recent weeks, NAFTZ has been instrumental in advocating for necessary updates concerning tariff and trade policies, addressing critical issues such as inverted tariff treatment and Customs modernization. Moreover, the association continues to engage with policymakers regarding various matters affecting e-commerce, domestic investment, and the resilience of supply chains.

The U.S. FTZ program serves numerous industries, including pharmaceuticals, aerospace, automotive, petroleum refining, consumer electronics, machinery, and food production, highlighting its broad economic impact. A recent survey indicated nearly half of the respondents from the FTZ sector reported increased activity during 2025, with an additional 18% maintaining stable operations.

Under the guidelines of the FTZ program, products are permitted to be assembled, manufactured, processed, and distributed within these designated zones, providing vital support to both industry stakeholders and the overall economy. The implementation of this caucus is perceived as a pivotal step towards ensuring lawmakers are equipped with clear insights into how the FTZ program operates and its contributions to advancing national economic priorities.

Melissa Irmen, NAFTZ's director of advocacy, emphasized the relevance of continued congressional engagement and education as policymakers deliberate on trade and manufacturing strategies in a competitive global landscape: "The launch of this caucus offers a significant avenue for informing lawmakers on how the U.S. FTZ program underpins American labor, enhances trade compliance, fosters domestic capital investment, and fortifies supply chain resilience."

To stay informed about NAFTZ's endeavors and receive real-time updates, interested parties are encouraged to visit the official NAFTZ website and news feed.

About NAFTZ

The National Association of Foreign-Trade Zones (NAFTZ) represents the collective voice of the U.S. Foreign-Trade Zones community. NAFTZ is devoted to advocating for and promoting the U.S. FTZ program, working collaboratively to enhance the U.S. competitiveness, stimulate job creation, and support safe international trade operations. For more information, please visit www.naftz.org.