International Trade

Melvin: USMCA must remain a trilateral agreement

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The United States-Mexico-Canada Agreement (USMCA) is more than just a trade pact; it is the backbone of North America's economic strength and strategic resilience.

At a time when global supply chains are under increasing strain, and adversarial nations are seeking to undermine U.S. competitiveness, the trilateral nature of the USMCA is indispensable. Maintaining strong coordinated ties among the United States, Mexico, and Canada ensures that our industries remain integrated, our markets remain open, and our shared values are defended. 

For U.S. manufacturers, the benefits of a united North American market are clear: reliable supply chains, access to critical inputs, and expanded opportunities to innovate and grow. A trilateral USMCA reduces dependence on external powers for essential goods, strengthens domestic job creation, and reinforces America's industrial base. Beyond economics, this integration directly supports U.S. national security, giving our country and our allies greater control over critical technologies and resources at a moment when global competitors are intent on exploiting vulnerabilities.

The United States cannot carry the full weight of production and supply on its own. Modern manufacturing and security depend on deeply integrated supply chains that cross borders, with each North American partner contributing unique strengths. Canada provides critical natural resources, energy and advanced technology capabilities; Mexico brings a skilled workforce and essential manufacturing capacity that keeps costs competitive; and the United States supplies world class innovation, capital and industrial leadership. Together, this trilateral ecosystem makes North America far more resilient and competitive than any one nation could be in isolation. Any attempt to “go it alone” will raise costs, weaken our global position and expose us to greater risks from adversaries eager to exploit supply chain gaps. By relying on one another, we ensure that the whole of North America is stronger than the sum of its parts.

By working in concert, North America can set global standards, push back against unfair trade practices and present a united front that magnifies our economic influence and strategic leverage. A strengthened USMCA will allow us to advance both prosperity and security, ensuring that the United States and its partners remain leaders in an increasingly tested global landscape.

North American Strategy for Competitiveness (NASCO) is a unique tri-national coalition that brings together business leaders, policymakers, academic institutions and workforce organizations from across Canada, the United States and Mexico. With decades of experience promoting cross-border collaboration and advancing supply chain efficiency and security, NASCO has established itself as the premier voice for operational competitiveness in North America.

Our recommendations are specific and detailed, and they reflect the collective expertise of stakeholders who work daily at the intersection of trade, transportation and workforce development. NASCO’s insights are grounded in real-world operations and informed by the needs of companies and communities across all three countries. Our proposals are aimed at strengthening economic growth, securing our supply chains, reducing trade frictions, and enhancing North America's position in the global marketplace.

As we look ahead to the 2025-2026 review, the United States, Canada, and Mexico have a critical opportunity to strengthen our North American partnership. The USMCA must remain a trilateral agreement, binding the three nations together in common cause. Doing so will fortify U.S. manufacturing, secure our supply chains, and give us greater leverage in the global economy. 

Just as importantly, a unified North America presents a powerful strategic front against adversaries who seek to undermine our economic and national security. By recommitting to a stronger, forward-looking USMCA, we ensure that this agreement remains not only an engine of prosperity, but also a shield of resistance and competitiveness for generations to come.

NASCO stands ready to assist your Administration in any way to further the objectives of strengthening our North American trading region.

Editor’s Note: The above commentary was provided by Tiffany Melvin, president of North American Strategy for Competitiveness, Inc. It formed the basis for a letter Melvin sent to Daniel Watson, assistant U.S. trade representative for the Western Hemisphere in the Office of the U.S. Trade Representative. The letter included five pages of recommendations.