The United States-Mexico-Canada Agreement (USMCA) goes into effect today—after years of advocacy by the National Association of Manufacturers and its partners.
So what does that mean for the American and global economies? NAM Senior Director of Trade Policy Ken Monahan’s answer: “The agreement will help strengthen supply chains, restore certainty, enable growth, bolster America’s competitiveness and support manufacturing jobs in the United States.” Here’s a condensed interview with Monahan that lays out the USMCA’s importance.
What’s in it: The USMCA updates and replaces the 26-year-old North American Free Trade agreement to ensure open, rules-based trade across North America. Monahan summarizes its long list of provisions: “intellectual property protections, new standards for the digital economy, reduction in red tape and unnecessary regulations, fair standards for competition and binding enforcement to protect all parties.”
Why it matters: The strength of America’s economy and markets is connected to the way we interact with our closest trading partners, Monahan emphasizes. Some numbers to keep in mind:
- Canada and Mexico alone purchase one-fifth of the total value of U.S. manufacturing output.
- Canada and Mexico purchase more U.S.-made goods than our next 11 trading partners combined despite representing only 6 percent of the world’s population.
- In addition to more than 2 million American manufacturing jobs, more than 40,000 small and medium-sized businesses depend on exports to Canada and Mexico.
What’s next: “Manufacturers are committed to working with the U.S., Mexican and Canadian governments to ensure that the USMCA is implemented in a manner that will support the recovery and renewal of the U.S. manufacturing economy,” says Monahan.
The last word: NAM President and CEO Jay Timmons summed it up: “The landmark trade agreement we fought hard to secure now enters into force at a critical time. It will help restore certainty, ensure supply chain continuity and provide opportunities for economic growth—all of which will help our industry lead the nation’s recovery and renewal.”
Washington, D.C. – Ahead of the midterm elections, the National Association of Manufacturers released its policy roadmap, “Competing to Win,” a comprehensive blueprint featuring immediate solutions for bolstering manufacturers’ competitiveness. It is also a roadmap for policymakers on the laws and regulations needed to strengthen the manufacturing industry in the months and years ahead.
With the country facing rising prices, snarled supply chains and geopolitical turmoil, manufacturers are outlining an actionable competitiveness agenda that Americans across the political spectrum can support. “Competing to Win” includes the policies manufacturers in America will need in place to continue driving the country forward.
“‘Competing to Win’ offers a path for bringing our country together around policies, shared values and a unified purpose,” said NAM President and CEO Jay Timmons. “The NAM is putting forward a plan filled with ideas that policymakers could pursue immediately, including solutions to urgent problems, such as energy security, immigration reform, supply chain disruptions, the ongoing workforce shortage and more. Manufacturers have shown incredible resilience through difficult times, employing more workers now than before the pandemic, but continued resilience is not guaranteed without the policies that are critical to the state of manufacturing in America.”
The NAM and its members will leverage “Competing to Win” to shape policy debates ahead of the midterm elections, in the remainder of the 117th Congress and at the start of the 118th Congress—including in direct engagement with lawmakers, for grassroots activity, across traditional and digital media and through events in key states and districts as we did following the initial rollout of the roadmap in 2016.
The document focuses on 12 areas of action, and all policies are rooted in the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.
Learn more about how manufacturers are leading and about the industry’s competitiveness agenda at nam.org/competing-to-win.
The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org