US Groups Urge USTR to Preserve USMCA, Citing Auto Investment

US automotive and manufacturing organizations urged the Office of the US Trade Representative (USTR) to preserve the core structure of the USMCA as the agency evaluates the accord during hearings held Dec. 3–5 in Washington. Industry leaders argued that the agreement has driven more than US$210 billion in US automotive investment and remains essential to North American supply chain integration.

Matt Blunt, president, American Automotive Policy Council (AAPC), said the agreement “remains the most vital trade agreement for America’s automakers, enabling global competitiveness and spurring more than US$210 billion in US automotive investment since its implementation.” He added that recent tariff  actions involving non-North American partners “underscore the need to restore and strengthen the USMCA advantages.”

AAPC, which represents Ford Motor Company, General Motors and Stellantis, emphasized that the agreement’s rules of origin have fueled increases in investment, production and employment in the US auto sector. Blunt said the council is asking the administration to maintain the agreement’s core structure while pursuing “targeted refinements, adequate transition periods, and measures that further incentivize North American supply chain resilience.” He said AAPC will work with USTR to ensure the pact continues to bolster regional competitiveness.

US manufacturers echoed that position. The National Association of Manufacturers (NAM), the largest industrial association in the country, said the agreement remains critical for the sector. “The USMCA is the most pro-US manufacturing trade agreement in history. It is foundational for manufacturing growth at home. It expands sales opportunities across North America and strengthens our industry’s global competitiveness,” said Charles Crain, Managing Vice President of Policy, NAM.

NAM represents companies employing 13 million people and contributing US$2.9 trillion to the US economy. Canada and Mexico together purchase more than one-third of US manufactured goods exports. Sixteen of 21 US manufacturing subsectors have increased exports to Canada and Mexico at a faster pace than to the rest of the world under USMCA, according to NAM.

Crain added that major portions of US imports from Canada and Mexico are industrial inputs used by domestic manufacturers. “Half of all US purchases from Canada and almost 70% from Mexico are transactions between related parties,” he said, adding that these flows consist largely of materials, parts, equipment and machinery essential to US factory operations. He noted that 72% of imports from Canada and 63% from Mexico are industrial inputs. “This is the most complementary and symbiotic trade relationship we have in the manufacturing sector, built on the foundation of the USMCA,” he said.

Both associations framed their recommendations in the context of the agreement’s mandatory six-year review scheduled for July. Crain said manufacturers in the US “can outcompete anyone in the world,” adding, “we can use the USMCA to do it.”