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Since going into effect just over five years ago, the U.S.-Mexico-Canada Agreement (USMCA) has played a critical role in enhancing Texas’ position on the world stage. Not only has the landmark agreement appropriately modernized and improved upon the previous North American Free Trade Agreement (NAFTA) – signed in San Antonio in 1992 – it has also played a major role in bringing critical supply chains closer to home and positioned Texas to continue years of record-breaking economic growth driven by even stronger commercial relationships with our North American trade partners – Mexico and Canada.

This week, the Texas Association of Business (TAB) was proud to be the only state chamber of commerce in the country to provide testimony alongside business leaders, economists, think tanks, and trade associations to U.S. Trade Representative (USTR) urging a smooth and constructive process that secures the renewal of the USMCA as it undergoes its first review in 2026.

No state has more at stake when it comes to international trade than Texas. As the top exporting state for more than two decades and the world’s 8th largest economy by GDP, Texas is truly in its own league. Last year alone, the Texas-Mexico trade relationship was worth approximately $281 billion, creating nearly half a million jobs in Texas alone and 5 million nationwide. Likewise, the Texas-Canada trade relationship was valued at $75 billion last year, with 1,440 Canadian-owned companies creating 96,050 jobs in Texas.

The increased integration of North American supply chains, combined with ongoing nearshoring efforts bringing American companies’ manufacturing operations back to North America and de-risking from China, have resulted in major economic benefits for Texas – which is why it’s more important than ever to ensure the USMCA is preserved and strengthened as the agreement undergoes its first review next year.

Texas’ automotive manufacturing industry, for example, contributed more than $19 billion to our state’s GDP in 2024, supporting more than 50,000 jobs in the Lone Star State alone. Because of the strong, integrated trade alliance with Canada and Mexico, Texas now accounts for 11% of all U.S. auto exports.

With Texas’ continued leadership in semiconductor manufacturing, aerospace, data centers, and electronic components that support AI-driven innovation, our strategic geography – including 34 of 49 total land crossings between the U.S. and Mexico – ensures that businesses across all sectors will continue to benefit from enhanced efficiencies in cross-border commerce under the USMCA.

TAB and members of our Texas Leads Trade Coalition look forward to continuing to serve as the unified voice of the Texas business community in articulating the value and importance of the USMCA for the Texas economy. Working alongside our federal partners and business leaders in Mexico and Canada, we will ensure that our federal leaders engaging in next year’s USMCA review understand Texas’ role as the centerpiece and economic engine of the North American economy, as well as our priorities in facilitating a smooth, productive renewal process that strengthens our role on the global stage.

To read this week’s testimony from TAB to the Office of the U.S. Trade Representative, click here.

–David Zapata, VP of International Affairs and Director, Mexico Trade & Investment Policy Council, Texas Association of Business

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