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Senators showed strong support for the U.S.–Mexico–Canada Agreement yesterday, at a Senate Finance Committee hearing titled “The U.S.–Mexico–Canada Agreement: Evaluating North American Competitiveness.”

What policymakers are saying: “Speaking at the top of the committee’s hearing on the North American trade pact, Finance Chair Mike Crapo (R-ID) underscored that ‘Mexico and Canada are two of our most important trading partners’” (POLITICO, subscription).

• “This trilateral relationship should not be taken for granted,” Sen. Crapo emphasized.

NAM in action: Ahead of the hearing, the NAM urged legislators to make fine-tuned improvements to the USMCA and preserve continuity during its six-year review process. “The USMCA is the most pro-U.S. manufacturing trade agreement in history,” the NAM said.

By the numbers: Marshalling data to make its case, the NAM demonstrated why the USMCA is so essential to manufacturing in America.

• “North America accounts for nearly one-third of global GDP—nearly double China’s contribution. Annual trade among the three countries reached $1.5 trillion in 2024, the equivalent of $2.8 million in transactions every minute,” it said.
• “Canada and Mexico buy more than one-third of all U.S.-manufactured goods exports—more than the next 12 U.S. trading partners combined.”
• “These imports fuel manufacturing at home. Seventy-two percent of imports from Canada and 63% of imports from Mexico are industrial materials, parts and components that directly feed into further manufacturing in the U.S. as well as machinery and equipment installed on American factory floors.”

Targeted improvements: The NAM also laid out its recommendations for upgrading and modernizing the agreement:

• Ensuring operational continuity: Manufacturers build up supplier relationships, including those spanning North America, over the course of decades, prioritizing the security and reliability that geographic proximity provides to navigate a complex global landscape—which means that continuity is of the utmost importance when making any changes to the agreement.
• Making process improvements: Many commercial benefits for manufacturers could be achieved through the provisions of the USMCA as it stands, the NAM said. Important adjustments that leverage or build on the existing text include cutting red tape at the border, reducing compliance costs, making targeted adjustments to rules of origin, securing stronger commitments on the behavior of state-owned enterprises and ensuring better protections for U.S. investments in Mexico, particularly in energy.
• Establishing continuous feedback loops: The working groups established under the USMCA to address customs cooperation, regulatory issues and other key areas are underused, the NAM pointed out—and the three nations should ensure these groups meet regularly and engage with private-sector stakeholders, instead of waiting for annual reviews, to keep the agreement best in class.

The last word: “As the committee considers the operation of USMCA prior to the first joint review on July 1, the NAM underscores that the agreement plays a pivotal role in ensuring the global competitiveness of manufacturing in the U.S.,” said NAM Vice President of International Policy Andrea Durkin and NAM Director of International Policy Kevin Doyle.

• “We look forward to working with the committee on promoting a pro-manufacturing and pro-growth agenda for North American trade, with a strong USMCA serving as the blueprint.”