Business and Trade Groups Urge USTR to Defend USMCA Ahead of 2026 Review - AiDeliv
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Business and Trade Groups Urge USTR to Defend USMCA Ahead of 2026 Review

Business and Trade Groups Urge USTR to Defend USMCA Ahead of 2026 Review

Coalition letter delivered to USTR Jamieson Greer

More than 500 companies, trade organizations and local chambers of commerce joined a letter led by the United States Chamber of Commerce addressed to United States Trade Representative Jamieson Greer. The group asked the USTR to maintain strong support for the United States-Mexico-Canada Agreement (USMCA).

Central case for continued USMCA backing

The letter argued that USMCA is vital to the nation’s economic prospects because it maintains and strengthens U.S. trade links with Canada and Mexico. It emphasized the agreement’s role in supporting American employment and export competitiveness.

Data and claims cited in the letter

The coalition underscored several factual points about North American trade:

  • More than 13 million U.S. jobs rely on commerce with Canada and Mexico
  • U.S. manufacturers send more made-in-America goods to Canada and Mexico than to the next 12 largest export markets combined
  • Canada and Mexico account for roughly one-third of U.S. agricultural exports
  • They are the top two markets for U.S. small and medium-sized firms, with over 100,000 such businesses selling to Canada and Mexico

How the letter described market access and tariff coverage

The signatories said USMCA preserves access for U.S. manufacturers, farmers and service providers to Canadian and Mexican markets and that virtually all U.S. exports enter those markets tariff-free under the pact. The letter also argued the agreement helps American companies and employees remain competitive in the two largest U.S. export destinations.

Representative organizations that signed the letter

Alongside the U.S. Chamber, the letter was signed by a wide range of trade groups and associations. Examples named by the coalition included:

  • American Apparel & Footwear Association (AAFA)
  • American Association of Importers and Exporters
  • American Trucking Associations
  • Business Roundtable
  • Industrial Truck Association
  • National Retail Federation

USTR consultation and upcoming public hearing

The Office of the U.S. Trade Representative announced in mid-September that it would conduct a public consultation ahead of the treaty’s first six-year joint review scheduled for July 1, 2026. USTR said the consultation is required by law and that it would seek public comments on the operation of USMCA, noting those comments would address several topics but did not specify a full list in the announcement.

On Monday, December 1, USTR stated it will hold a public hearing on the operation of USMCA from Wednesday, December 3 through Friday, December 5, in advance of the 2026 joint review.

Historical context and stated improvements over NAFTA

USMCA entered into force on January 29, 2020, during President Donald Trump’s first term, replacing the North American Free Trade Agreement (NAFTA), which took effect in 1994. While many rules, procedures and covered products mirror NAFTA, analysts have identified notable changes—among them stronger environmental and labor provisions, incentives to boost domestic car and truck production, and the inclusion of intellectual property protections.

Supporters argued those IP provisions were particularly timely amid trade tensions tied to alleged theft of American intellectual property by foreign actors. Former U.S. Trade Representative Robert Lighthizer described USMCA as a meaningful upgrade from NAFTA, aimed at generating manufacturing jobs, safeguarding U.S. advantages in technology and innovation, expanding market access for American businesses and agriculture, and fostering bipartisan political support for a new trade approach.

Recent U.S. trade actions involving Canada

Since President Trump returned to the White House earlier this year, relations with Canada have experienced fluctuations. As previously reported by LM, in July the President said via social media that he had sent a letter to Canadian Prime Minister Mark Carney announcing that, effective August 1, the United States would impose a 35% tariff on products imported from Canada, separate from sector-specific duties.

The U.S. had already applied multiple tariffs on Canadian goods, including:

  • 25% on non-USMCA goods
  • 10% on energy resources and potash
  • 50% on certain steel and aluminum
  • 25% on autos and auto parts

In his letter to Prime Minister Carney, the President said the initial U.S. tariffs were imposed to address the U.S. fentanyl crisis, and he noted Canada had retaliated with its own tariffs on U.S. imports. On March 4 Canada implemented 25% duties on $30 billion of U.S. goods, including consumer and household items, and on March 12 added 25% tariffs on $29.8 billion of U.S. goods, covering products such as steel, aluminum, tools and computers.

In late August, Prime Minister Carney announced that Canada would lift certain retaliatory import duties on U.S. goods covered by USMCA, marking a shift from the earlier period of heightened tensions. But in late October, President Trump said trade talks with Canada had been suspended, blaming a Canadian television advertisement funded by the province of Ontario that featured the late President Ronald Reagan stating that “tariffs hurt every American.” The President asserted the ad was intended to influence pending judicial decisions over the legality of the White House’s use of IEEPA tariffs.

Mexico trade measures and USMCA origin rules

The letter and subsequent actions also addressed Mexico. Goods from Mexico that meet USMCA rules of origin enter the United States duty-free, while imports that do not qualify face a 25% tariff under the administration’s approach. In a March letter to Mexico’s president, Claudia Scheinman, President Trump said the United States imposed tariffs on Mexico to confront the nation’s fentanyl problem, which he attributed in part to Mexico’s inability to stop cartel activity.

Additional U.S. duties on Mexican-origin or non-originating products cited include:

  • 25% import tariff on steel
  • 10% tariff on aluminum
  • 25% tariff on autos and auto parts that do not meet USMCA content or labor thresholds
  • 20% fentanyl-related tariff on non-originating goods

What comes next for USMCA stakeholders

The coalition’s plea to USTR Greer comes as stakeholders prepare to provide input during the statutorily required consultations and to participate in the December public hearing ahead of the treaty’s six-year review. The signatories framed their appeal around protecting jobs, market access and the competitive position of U.S. industry and agriculture in North America.

“USMCA remains critical to our economic future because it preserves and strengthens U.S. trade ties to Canada and Mexico,” the coalition wrote.

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