Business Groups Highlight Economic Benefits of Continuing USMCA

FEDA has joined a coalition of business advocacy groups and trade associations in urging the Trump administration to preserve the free trade agreement between the United States, Mexico and Canada.

The U.S.-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020, mandates that the three countries conduct a joint review of the trade deal in July 2026. In September, the U.S. Trade Representative announced public consultations and a hearing in November regarding the USMCA joint review. The future of the trade agreement is somewhat uncertain after the United States implemented new tariffs on both countries earlier this year, although USMCA-compliant products are exempt from those tariffs. The three countries had been negotiating new trade deals to address the tariffs; however, the Trump administration announced on Oct. 23 that it was terminating those talks with Canada.

In a letter to U.S. Trade Representative Jamieson Greer, business groups noted the importance of the economic relationship between the United States, Mexico and Canada. More than 13 million American jobs depend on trade with the neighboring countries, and U.S. manufacturers export more made-in-America goods to Mexico and Canada than they do to the next 12 largest export markets combined. The two countries are also the top two export destinations for 100,000 U.S. small- and medium-size businesses.

“While a number of important compliance issues require greater attention and remediation through the joint review now underway, USMCA remains critical to our economic future because it preserves and strengthens U.S. trade ties to Canada and Mexico,” the letter states.

The full letter is available here.