The National Association of Manufacturers (NAM) is calling for further improvements to the United States-Mexico-Canada Agreement (USMCA), arguing that the trade deal can be made even more effective for US industry as it enters its six-year review phase.
NAM describes the agreement as the “most pro-U.S. manufacturing trade agreement in history,” but says there is still room to strengthen its impact on exports, investment and supply chain resilience across North America.
Since the USMCA was ratified in 2018, 15 out of 18 US manufacturing sectors have increased exports to Canada and Mexico, according to a report published on May 13. The group also says the agreement has supported stronger investment and hiring across the manufacturing base.
In 2024, US investors held $116.3 billion in foreign direct investment assets in manufacturing in Canada, and more than $63 billion in Mexico. Overall, nearly $614 billion in US imports for consumption are processed through USMCA provisions each year, with most of those flows involving industrial inputs, components and materials used in further US production.
Despite these gains, NAM argues that the agreement should be refined to better support long-term industrial competitiveness. Its recommendations include simplifying and digitising customs processes, strengthening protections for cross-border investment, improving access to critical minerals, and reinforcing energy security across the region.
The group also highlights the need to support emerging technologies, including artificial intelligence, through stronger digital trade rules and coordinated North American standards.
Other proposals include improving dispute resolution mechanisms, tightening enforcement of commitments, and creating more consistent regulatory frameworks to reduce friction between the three member countries.
The report, based on interviews with more than 30 manufacturers across different sectors, highlights six main benefits of the agreement: faster cross-border operations, better access to inputs, integrated regional production models, expanded markets, a broader labour pool and stronger supply chain resilience.
NAM President and CEO Jay Timmons said the agreement has already helped bring production back to the US and strengthen domestic manufacturing, adding that it has played a role in ensuring more goods carry the “Made in America” label.
At the same time, US Trade Representative Jamieson Greer has acknowledged both the strengths of the USMCA and areas where adjustments may be needed, particularly around tariffs, rules of origin and critical minerals.
As the review process begins, manufacturers are urging policymakers not to disrupt existing supply chains before clarity emerges on potential changes, especially in relation to tariffs and cross-border trade rules.
