Dive Brief:
- Since the United States-Mexico-Canada Agreement was ratified in 2018, 15 out of 18 U.S. manufacturing sectors have increased exports to Canada and Mexico, the National Association of Manufacturers said in a report released May 13, as policymakers begin their six-year review of USMCA.
- In addition, companies “across the manufacturing sector” have increased investment and hiring as a result of the USMCA, NAM said in a news release. In 2024, U.S. investors held $116.3 billion in foreign direct investment assets in manufacturing in Canada and more than $63 billion in Mexico, according to the report.
- However, NAM said policymakers should make process improvements, protect cross-border investments, secure critical mineral manufacturing inputs, shore up energy security and make other changes that will benefit manufacturers even further.
Dive Insight:
NAM’s report comes as trade groups representing industries including retail and consumer brands, auto parts, textiles and apparel are urging the Trump administration to promptly renew the USMCA and pursue sector-specific improvements.
For example, at a U.S. Trade Representative hearing in December 2025, trade association officials called for measures such as expanding the list of levy-free goods to include items unavailable in the three countries; better alligning regulatory, legal and safety requirements; implementing more uniform standards in reviewing and settling disputes; and stating clearer, more consistent due-process rules.
Companies from auto and other sectors are also lobbying for changes, such as tariff protections, or to preserve existing provisions that are important to them.
Overall, nearly $614 billion of U.S. imports for consumption utilize the USMCA every year, the report said. In addition, 71% of imports from Canada and 64% of imports from Mexico are industrial materials, parts and components that go into further manufacturing in the U.S.
In its report, NAM praised the USMCA and called for its swift renewal. It said the agreement is the “foundation for manufacturing dominance in the U.S.” and has increased exports to member countries, boosted investment and expanded hiring.
The agreement also has “strengthened customs procedures, harmonized regulations, increased protections for intellectual property rights and delivered other pro-manufacturing improvements — making North America the most attractive region to manufacture and driving real gains for America’s manufacturers,” NAM said.
“The USMCA is a proven engine for America’s manufacturing strength, ensuring that more products bear the imprint ‘Made in America,’” NAM President and CEO Jay Timmons said in statement. He credited the agreement for manufacturers’ decisions to reshore production and investments.
The report was based on interviews with more than 30 small, medium and large manufacturers, representing a variety of sectors. They cited six major advantages created by the USMCA, including:
- Flexibility and speed through proximity
- Access to critical manufacturing inputs
- A unique co-production model that leverages regional assets
- Access to greater sales markets across North America and the world
- A larger talent pool to address workforce shortfalls in the U.S.
- Supply chain resiliency in the face of global tensions
“Maximizing these advantages means putting America’s manufacturers first by maintaining open and reliable trade with our North American partners by preserving and enhancing the USMCA,” the report said.
The report called for several changes to strengthen the agreement even further, including:
- Make process improvements: This would include simplifying and digitizing customs documentation to ensure that all manufacturers that make things in North America can maximize the USMCA’s benefits.
- Strengthen protections: This includes better protections for “the deep levels of cross-border investment that power North American manufacturing co-production, including against expropriation and unfair treatment.”
- Secure critical manufacturing inputs: North America can better leverage its critical mineral assets “through duty-free trade, regulatory alignment and joint support for investing and scaling projects.”
- Reinforce North American energy security: “Coordinated permitting reforms, duty-free trade in energy and resolution of nontariff barriers in Mexico’s energy market” can help to secure additonal energy resources for manufacturing across the region.
- Promote artificial intelligence leadership: The USMCA should feature “strong digital trade provisions and a common AI action plan, including promotion of a North American AI technology stack.”
- Level the playing field: Widespread concerns about “unfair advantages for nonmarket economies” can be addressed through customs and investment screening cooperation and stronger discipline of state-owned enterprises.
- Emphasize enforcement: The parties should resolve to address disagreements “quickly, routinely and meaningfully, including through dispute settlement as appropriate, to ensure commitments are met under the agreement.”
- Ensure continuity with feedback loops: “North American manufacturing is built on a network of long-term relationships with qualified suppliers. Reinstating the institutional structures of the USMCA to promote smooth operation of the agreement should be the norm — and include the private sector as participants.”
U.S. Trade Representative Jamieson Greer told Congress in December that the United States is looking to secure changes to the deal before agreeing to extend it. Although he cited the USMCA’s success in increasing U.S. exports to Canada and Mexico, he also listed what the U.S. perceives as shortcomings on key supply chain topics like tariffs, rules of origin and critical minerals.
At the same time, manufactuers have expressed reluctance to nearshore operations before the review is complete and key issues are ironed out, especially regarding tariffs.
