International Trade

EXCLUSIVE: TAB writes to U.S. Trade Representative about USMCA

Posted

November 3, 2025

The Honorable Jamieson Greer

United States Trade Representative

600 17th Street NW

Washington, DC 20508

cc: Texas Congressional Delegation

Dear Ambassador Greer:

On behalf of the Texas Association of Business, the Texas State Chamber, and the Texas Leads Trade Coalition, we commend your commitment to ensuring an efficient review of the United States-Canada-Mexico Agreement (USMCA) in 2026. We agree wholeheartedly with President Trump that the USMCA is, by far, “the best and most important trade deal ever made by the USA.” This is especially true for Texas, which has been the nation’s top exporting state for two decades and currently has the 8th largest GDP in the world. As your office begins the required six-year joint review of this landmark Agreement, we respectfully urge you to ensure a smooth and constructive process that secures the USMCA’s renewal for the continued benefit of Texas businesses and our vital North American trade partners.

The USMCA has been an important factor for Texas’ economic success over the last 5 years, particularly in bringing our supply chains closer to home. By helping foster stronger trade relations with our North American partners, Mexico and Canada have become the largest and second largest trade partners, respectively, for the U.S. and Texas, surpassing China in both cases. Texas’ trade relationships with Mexico and Canada have been powerful drivers of our state’s economic growth.

In 2024 alone, Texas and Mexico had a trade relationship valued around $281 billion – creating over 5 million jobs in the United States and approximately 400,000 jobs in Texas, according to the Texas Department of Transportation (TxDOT). Similarly, Texas and Canada had a trade relationship valued at $75 billion in 2024, with 1,440 Canadian-owned companies creating 96,050 jobs in Texas. As a result of the monumental success of the USMCA, our supply chains have become extremely interconnected with our North American partners, which means that any disruptions on the Mexican side can stop industries from operating on the Texas side, impacting the flow of goods to the rest of the country. For this reason, it is imperative that the USMCA continues facilitating secure, efficient supply chains for the businesses in our state and the entire nation.

Texas is central to North America’s strategy to de-risk from China and further attract essential supply chains back to the United States, particularly to Texas. Texas is the top state for semiconductor manufacturing and has been leading the nation in exports of semiconductors and other electronic components for 14 years. The USMCA has been instrumental in continuing this trend, as the agreement provided a regional trade framework with high standard digital trade provisions to support the cross-border flow of components, unfinished parts, and other related electronics involved in advanced manufacturing.

The continued growth of high-tech industries such as semiconductors, Artificial Intelligence (AI), data centers, aerospace and their related suppliers in North America will support U.S. jobs, innovation and competitiveness. While Texas and other American states will be priority destinations, strengthening supply chains in Mexico and Canada will create efficiencies, increase U.S. competitiveness and further expedite this de-risking transition. As a result, the United States is in a stronger position to more decisively compete with China and the rest of the world economically as we continue our partnership and rules alignment and coordination with Canada and Mexico under the USMCA.

The automotive industry is another example of essential supply chains flourishing in Texas, as many auto and auto part-related companies are strategically located around the state. In 2024, the automotive industry supported 50,897 jobs in Texas and produced a GDP of $19.3 billion. Furthermore, last year all Texas automobile manufacturing imports totaled $62.9 billion – approximately 15% of total imports to the U.S. – while Texas exported $14.3 billion worth of auto parts over the same period – about 11% of the U.S. total. More than 76.4% of Texas’ auto parts exports were to Mexico, while Mexico accounted for 79.3% of Texas’ auto parts imports. This critical supply chain network has created a Texas-Mexico Automotive Super Cluster.

As the framework that underpins North American trade and investment, the USMCA has strengthened Texas’ role as a central hub for cross-border commerce and financial services. With NYSE Texas, Nasdaq’s second headquarters, and the forthcoming launch of the Texas Stock Exchange (TXSE), our state is attracting major financial institutions, many of which now employ more Texans than in their original home states. The Dallas–Fort Worth region, now the second-largest financial hub in the U.S., benefits directly from the USMCA’s emphasis on economic integration, open markets, and predictable investment conditions—principles that have made Texas the financial gateway of North America.

The 2026 review of the USMCA presents a key opportunity to advance one of President Trump’s strategic priorities in North America. The White House’s “AI Action Plan” unveiled in July outlines more than 90 federal actions across three pillars: Accelerating Innovation, Building AI Infrastructure, and Leading in International Diplomacy & Security. The recent strategic AI partnership between the U.S. and the United Arab Emirates (UAE), based on the White House’s AI Action Plan, provides a framework to develop similar partnerships with Mexico and Canada and further strengthen our competitive position on the world stage.

The United States’ role as the world’s preeminent economy is supported by our strong, integrated trade alliance with Mexico and Canada, both of which are key to our national security and economic success through a strong North American trade bloc that is better positioned to compete with China and other major economies. To achieve this, we must aim to maintain the USMCA principle of zero for zero tariff reciprocity for a tariff-free North American region.

The U.S.-Mexico border is connected by 49 total land border crossings, 34 of which are located in Texas. In 2024, $553 billion worth of trade passed through Texas, including millions of metric tons of U.S. agricultural commodities that support thousands of farmers across the country. For these reasons, the full implementation and enforcement of USMCA Chapter 7 provisions, together with timely stakeholder consultations, are needed to foster smooth and secure trade facilitation processes. Regular public-private dialogue on trade facilitation measures and ensuring proper funding for border infrastructure are key to the continued economic success of Texas and, by extension, the rest of the United States. The three countries must continue to identify innovative strategies to expedite commercial activity while maintaining security and avoiding the creation of traffic bottlenecks.

To maintain our global competitiveness, policies implemented under the USMCA must strengthen American industry by expanding access to high-skilled labor. The USMCA should preserve and expand its TN Visa program to ensure access to enough high-skilled workers in the U.S. labor market to complement our labor force.

The Texas Association of Business and Texas Leads Trade Coalition represent thousands of companies of every size and industry as well as local and regional chambers of commerce and many other Texas trade organizations. The preservation of the USMCA is vital for the Texas business community. On their behalf, we are providing you with more specific recommendations as an addendum to this letter.

The USMCA has been a positive tool for economic growth in Texas since it has fostered international trade, created jobs, and enhanced our state and national security by reducing dependency on China and expediting the relocation of critical companies to North America. Meanwhile, the USMCA has also encouraged more home-grown development of high tech and advanced manufacturing here in Texas along with the growth of several critical industries such as Artificial Intelligence, semiconductors, the automotive industry, financial services, agriculture, and many more.

The Texas Association of Business and the Texas Leads Trade Coalition support the USMCA and respectfully urge you to ensure a smooth and constructive process that secures the USMCA’s renewal. We look forward to positively engaging with you and your team to preserve the agreement during this joint review process.

Sincerely,

Glenn Hamer

President & CEO

Texas Association of Business