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“The United States–Mexico–Canada Agreement is the most pro-U.S. manufacturing trade agreement in history.” With those words, the NAM sent a clear message to the Office of the U.S. Trade Representative, which recently solicited comments on the nearly six-year-old agreement ahead of the three countries’ joint review next year.
 
The big picture: “The USMCA, as negotiated and ratified during the first Trump administration, not only supports manufacturing at home and for the North American market, it is also a core driver of the global competitiveness of manufacturers in the U.S.,” the NAM told the USTR.

• “The North American co-production model enabled by the USMCA has boosted American manufacturing to unparalleled levels … nearly $3 trillion in 2024.”

By the numbers: The NAM included many statistics that show the preeminence of North American trade. Among them:

• “Together with Mexico and Canada, North America accounts for nearly one-third of global GDP.”
• “In 2024, the total value of goods and services trade among the U.S., Mexico and Canada was about $1.5 trillion—the equivalent of $2.8 million in transactions in North America every minute.”
• “Since entry into force of the USMCA, Mexico and Canada have surpassed China as the U.S.’s top trading partners. Canada and Mexico purchased more than one-third of U.S.-manufactured goods exports in 2024 … nearly six times more than China.”
• “Seventy-two percent of imports from Canada and 63% of imports from Mexico are industrial materials, parts and components that go into further manufacturing in the U.S. and the machinery and equipment installed in American factories.”

Looking ahead: The NAM’s advice to the USTR also included a list of practical steps to strengthen the agreement. 

• Assure operational continuity: Perhaps the most important goal of the USMCA review should be to keep cross-border trade humming along without disruption.
• Make process improvements: That said, certain key measures would help improve this productive trade relationship, including cutting red tape at the border, promoting greater use of existing rules of origin, seeking manufacturers’ input when refining those rules, protecting cross-border investments and more.
• Respect the contract: In areas where Mexico or Canada have failed to meet their obligations, policymakers should use the USMCA review to bring them into compliance. 

Bigger goals: The NAM also discussed measures that would build on the USMCA.

• Critical minerals: Policymakers should explore ways to build an integrated North American critical minerals supply chain through the USMCA.
• Energy: They should also unleash North American energy to fuel manufacturing, including through cross-border trade, investment and infrastructure.
• Economic security: Policymakers should also build new tools with Mexico and Canada to help address national and economic security threats that impact manufacturers in the U.S.
• Other fruitful areas of cooperation are AI policy, digital trade provisions, defense manufacturing and more, the NAM told the USTR. 

Read the whole thing: Read the NAM’s full submission for more details, as well as important recommendations about solving operational issues in North American trade and combatting unfair trade practices.  

In the news: POLITICO’s Morning Trade Newsletter (subscription) covered the NAM’s submission to the USTR.

Stay tuned: The USTR will hold a public hearing on the USMCA Dec. 3–5, at which NAM Vice President of International Policy Andrea Durkin will testify.