First, on a happy note: it’s awesome that all three North American soccer teams — the United States, Mexico and Canada — have advanced to the Round of 16 in a World Cup being held in all three countries.
As expected, the United States did not elect to extend the U.S.-Mexico-Canada Agreement (USMCA) for another 16 years yesterday, as Canada and Mexico had already chosen to do.
The good news is that USMCA remains in force but is now subject to annual reviews. It’s true that the cycle of annual reviews injects uncertainty into investment decisions. But forces in all three countries are working hard toward a more permanent solution.
Mexico has offered a number of constructive options to strengthen North American trade, including boosting manufacturing in North America, decreasing imports/content from Asia, developing local supply chains (great for small businesses in all three countries — USMCA has an SME section), and pursuing possible joint tariff policies to make our region more competitive.
Canada has stressed the need for secure and predictable access to each other’s markets. The country is also increasing its presence in key states, like Arizona — just last week, Canada reopened its Consulate in the state.
In the U.S., it’s the business community driving deeper integration.
A WSJ editorial from earlier this week stated: “North American economic integration has been good for all three countries. Cross border duty-free commerce in goods and services on the continent was $1.9 trillion in 2025, up from $297 billion in 1993…. The best hope of keeping North American integration alive is American farmers, ranchers and businesses, whose interests, workers and customers are the beneficiaries of the globally competitive region.” NAM has said “co-production” is “the secret sauce” that makes the U.S. a manufacturing powerhouse and more globally competitive, citing stats that the U.S. exports more to Mexico and Canada combined than to our next 10 largest trading partners.
For states that are export powerhouses like Texas — #1 in the nation — and/or magnets for FDI like Arizona, where the TSMC planned investment is the largest in our nation’s 250-year history, the pact is huge.
Today in Mexico City I attended a press event hosted by the American Society of Mexico. The American Society has, for over 80 years, represented American interests in Mexico and promoted deeper trade, cultural and educational ties. Trade between the U.S. and Mexico will soon surge to over $1 trillion annually.
My late boss, Tucson Congressman Jim Kolbe, one of the architects of the original trade deal between the three countries, would be thrilled with the increased trade numbers. Also worth noting: as a result of USMCA, China is no longer the largest trading partner of the U.S. — it now trails our North American friends, allies and co-soccer hosts.
Trade is good. Juntos!
Editor’s Note: The above commentary was penned by Glenn Hamer, a leading advocate for free trade in the United States. The commentary first appeared on his social media pages. It appears in the RGG Business Journal with the permission of the author.
