Electrical Manufacturers Urge USMCA Renewal, Stronger Trade Alignment

ARLINGTON, VA—Electrical manufacturing groups across North America are calling on trade officials to renew and strengthen the United States-Mexico-Canada Agreement (USMCA), citing its role in supporting regional supply chains, manufacturing investment and energy infrastructure.
The National Electrical Manufacturers Association (NEMA), Mexico’s CANAME and Electro-Federation Canada (EFC) issued a joint appeal ahead of the agreement’s scheduled July 2026 review, urging policymakers to build on the current framework to support continued growth in manufacturing, grid reliability and emerging technologies such as AI.
The groups said the USMCA has helped strengthen regional supply chains and reduce reliance on imports from outside North America. According to NEMA, U.S. electrical manufacturers have reduced dependence on materials from China by more than 49 percent since 2018, while investing more than $185 billion in domestic production capacity during the same period.
Electrical components play a critical role in manufacturing and infrastructure development, accounting for approximately one-third of the cost of building AI data centers and about 10 percent of the cost of constructing new U.S. manufacturing facilities.
The organizations also emphasized the importance of maintaining a unified, trilateral agreement, warning that policy fragmentation could disrupt supply chains and investment planning across the region. The USMCA currently governs nearly $2 trillion in trade and represents about 30 percent of the global economy.
As part of the upcoming review, the groups outlined several priorities, including strengthening technical standards harmonization, refining rules-of-origin requirements in consultation with industry and preserving the agreement’s three-country structure.
Together, the three associations represent industries employing more than 890,000 workers across North America, underscoring the scale of manufacturing tied to the agreement and its broader impact on industrial growth and competitiveness.
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