Former USMCA Negotiators Launch Trade Coalition

As negotiations continue around Trump’s proposed tariffs, the Coalition for North American Trade (CNAT), led by former key negotiators of USMCA, was officially launched on Feb. 14, 2025, as a trinational private-sector group aimed at promoting the benefits of USMCA. The coalition seeks to ensure a successful review of the trade agreement in 2026, when the three countries will decide whether to extend it for another 16 years.  

CNAT is led by Kenneth Smith Ramos, Mexico’s former chief trade negotiator; Kevin Brady, former chairman of the US House of Representatives Ways and Means Committee; and Steve Verheul, Canada’s former chief trade negotiator. The coalition is supported by founding organizations, including Mexico’s Council for Foreign Trade, Investment and Technology (COMCE), the Consumer Technology Association, and the Business Council of Canada, all focused on lobbying for the continuation of USMCA. 

The agreement, in effect since 2020, provides economic stability and predictability for businesses across North America, argue the experts. It also plays a role in countering unfair trade practices, strengthening supply chains, and fostering economic growth. The upcoming joint review in July 2026 will determine whether the agreement is extended or subjected to annual reviews, which could introduce uncertainty and impact investment decisions.  

Brady, Smith, and Verheul emphasize the need for businesses to play an active role in the review process to safeguard the trade pact’s long-term benefits. “If we do not achieve a complete renewal of USMCA at the first opportunity, it would lead to the type of disruption and uncertainty that none of our industries or businesses can afford,” Verheul stated.  

Brady noted that the review will take place in a politically complex environment in the United States, where immigration policy is a key issue. “For the United States, security is in a real crisis,” he said, adding that negotiators must find creative solutions to address US concerns over illegal migration while maintaining strong trade ties. He also acknowledged that former President Donald Trump’s negotiating style could make the process more unpredictable.  

Smith stressed the importance of using data to demonstrate that USMCA effectively combats unfair trade practices. He cautioned against imposing tariffs, citing their negative impact on trilateral trade.  

CNAT aims to unify businesses, trade associations, think tanks, and other stakeholders to advocate for the agreement’s extension. The coalition will serve as a platform for information-sharing and strategic coordination while complementing individual advocacy efforts. Its goal is to ensure that USMCA remains a pillar of North American trade, enhancing economic integration and investment certainty across the region.

Trump’s Trade Strikes

During his first administration, President Donald Trump insisted on including a clause in USMCA allowing for future renegotiations. Now, at the start of his second term and two years before the sunset clause takes effect, Trump has announced plans to impose significant tariffs on Mexican and Canadian products, raising concerns about the future of North American trade.

In the midst of the tariff negotiation, Trump ordered an investigation into the implementation of new reciprocal tariffs, a key element of his trade policy. While he hinted at announcing new tariffs, it was later clarified that the administration is launching a review rather than imposing immediate measures.

If Trump proceeds with a delayed 25% tariff on Mexican and Canadian imports, the total cost to American households could exceed US$1,200 annually, according to the Peterson Institute. Essential goods, including medical supplies and European cars, are expected to become more expensive.

Sheinbaum has taken a cautious and strategic approach, dispatching Secretary of Economy Marcelo Ebrard to Washington to negotiate trade matters while Security Chief Omar García Harfuch addresses issues related to narcotics and organized crime. Analysts praised Sheinbaum’s approach, highlighting her measured tone and strategic response. Jorge Guajardo, a former ambassador, described her handling of the situation as “masterful,” while Lila Abed of the Wilson Center pointed to Mexico’s increased fentanyl seizures as a key factor in negotiations.