A Strong USMCA Will Be Key to US Economic Success

In 2026, the United States will celebrate the 250th anniversary of its independence amidst some of the most far-reaching geopolitical shifts since the end of the Cold War. Domestically, intense—and often contentious—political and societal debates on how the nation can best position itself in a fast-changing world will continue as the current administration substantially recalibrates its approach to international engagement. In the cutthroat race for investment, markets for high-value manufactured and agricultural goods, and to harness the benefits of technology and innovation on behalf of workforce and economic growth, the United States is uniquely placed to enhance its global economic advantages. It can best achieve this through a strong, collaborative partnership with its North American neighbors that leverages complementarities to bolster competitiveness and productivity.

When Americans take to the streets on the Fourth of July to watch fireworks and parades, the North American partners will have just begun the mandated joint review of the 2020 United States-Mexico-Canada Agreement (USMCA). Several scenarios are possible, from a 16-year extension of the trade agreement to a decision to engage in yearly reviews to a worst-case unilateral withdrawal. Thousands of companies, individuals, business associations, and other key stakeholders have contributed to the debate by participating in public hearings or submitting comments in consultations conducted by the three countries.

With some exceptions and room for improvement, the USMCA has yielded significant benefits for the US economy by strengthening supply-chain resiliency, attracting foreign investment, creating new opportunities for American workers, and consolidating export dynamics with its two biggest customers: Mexico and Canada.

Economic security is national security. A renewed USMCA that adds value to what North America produces and exports, fosters higher wages, strengthens supply chains, and sets clear, predictable, and binding rules of the road for investors, importers, and exporters will enhance North America’s collective capacity to succeed in an ever more complex economic environment. As a firm believer in the power of what the United States and Mexico can achieve when working together, I am optimistic our leaders will be up to the challenge.