AZ business leaders urged to support USMCA trade deal renewal as 2026 deadline nears
Steven Zylstra & Carol Colombo, Contributing Writers
Story Highlights
- USMCA renewal in 2026 is crucial for Arizona’s economic growth
- Arizona exported $32.2 billion in goods in 2024, mainly to Mexico and Canada
- USMCA impacts numerous sectors, from restaurants to semiconductor manufacturing
Arizona’s growth is not accidental. It’s the result of strategic planning, hard work, long-term capital investments, and a North American market that buys what we make and powers what we build.
Credit for the success goes to the United States-Mexico-Canada Agreement (USMCA), which keeps the market open, predictable and tariff-free for goods that meet the USMCA rules of origin.
We all have the opportunity to help ensure the good news continues, as the USMCA, which was signed into law in 2020 under then-President Donald Trump, is now up for renewal. On July 1, 2026, a decision will be made by the leaders of Canada, Mexico and the U.S. whether to renew the agreement for an additional 16 years.
An alternative is going into a holding pattern through annual reviews that could have a chilling effect on long-term capital investments in our region. The U.S. government also could elect to withdraw from the agreement entirely. Neither choice would benefit anyone.
Since the passage of the North American Free Trade Agreement more than 30 years ago, we have steadily integrated our trinational supply chains, enhanced our ports of entry and transportation infrastructure to support free flow of goods and the security of our border, and built year-round food production capabilities in all three countries.
It’s now almost impossible to imagine the economic disruption that would result from a withdrawal or even a decision not to renew the USMCA on time.
Arizona set record for exports in 2024
Arizona set a record for goods exported in 2024, reaching $32.2 billion. Our top customers? The same neighbors we work with daily: Mexico and Canada. In 2024 alone, Arizona shipped about $9 billion in goods to Mexico and about $2.8 billion to Canada.
Arizona’s economy has received tens of billions of dollars in direct Canadian investment during the past decade as more companies establish operations here, due in part to our proximity to Mexico, and more Canadians invest in residential real estate. The dollars reflect purchase orders, paychecks and local tax bases across our state.
Our federal government has been making its own investments by modernizing Arizona ports of entry. An efficient, secure border is a competitive advantage for the entire nation.
USMCA’s impact is felt on Main Street and in industrial parks alike. Examples include:
- Restaurants and retailers: Consistent cross-border trade helps keep staple ingredients and fresh produce moving tariff-free, supports pricing and ensures food security.
- Construction trades and equipment dealers: Duty-free access on qualifying building materials and machinery, lowers project costs and shortens repair cycles.
- Automotive and heavy trucks: Content rules provide strong incentives for supplier-network development. Arizona is part of that network through parts makers, logistics hubs and advanced vehicle manufacturing.
- Mining and energy: Copper is the backbone of electrification and Arizona is a national leader, producing roughly 70% of U.S. copper mine output. Regional trade helps projects meet timelines for grid, clean energy and defense customers.
- Semiconductors and advanced packaging: The TSMC buildout and Amkor recently breaking ground on a major advanced-packaging campus close a key gap in the supply chain. These investments work best when suppliers and customers move components freely.
- Small and medium-sized enterprise (SME) exporters: Mexico and Canada are the top markets for U.S. SMEs, giving smaller firms a clear, rules-based path to scale with competitive, tariff-free pricing.
USMCA is more than a trade agreement. It is an economic partnership among three geographically contiguous democracies. The best way to compete globally and enhance our national security is to deepen integration among trusted partners and de‑risk exposure to adversarial supply chains.
With our partners in Mexico and Canada, the U.S. should adopt an enforcement package to deter non‑regional transshipment and import substitution in autos and auto parts, semiconductors and electronics, and other sensitive sectors. In tandem, Mexico should adopt investment-screening tools to block non-aligned nations from accessing critical technology, infrastructure and sensitive data.
As we look into the future, the USMCA framework should be used to advance North American critical‑mineral and pharmaceutical strategies, leveraging strategic capacities in Mexico and Canada. To mitigate national‑security and public‑health risks, we should pursue a coordinated North American effort to reshore critical minerals, as well as essential‑medicine and active pharmaceutical ingredient production.
It’s critical to Arizona that USMCA is renewed on time. Business leaders should act to influence the review outcome by submitting comments to the Office of the United States Trade Representative by Nov. 3, 2025, at https://comments.ustr.gov/s/. In the search bar titled Search Public Dockets, type docket number USTR-2025-0004 then follow the prompts. For help with your submission, send an email to [email protected].
Steven Zylstra is president and CEO of the Arizona Technology Council; Carol Colombo is chair of the Arizona District Export Council.