How USMCA Benefits U.S. Manufacturers with Operations in Mexico
04.15.26Article Overview: Since the USMCA was officially enacted in 2020, it has benefited U.S. manufacturers with operations in Mexico. The expectation is that it will continue to do so under the current agreement while modernized rules of trade are monitored.
In March, the U.S. Trade Representative and Mexican Secretary of Economy announced the first round of discussions in anticipation of the Joint Review of the USMCA later this year. The review is to ensure the agreement continues to benefit all parties and address what, if anything, can be adjusted to strengthen it. 
This includes but isn’t limited to reducing dependence on imports outside of North America, tightening rules of origin, and increasing integration and security of supply chains across the three involved countries.
Thus far, the agreement and manufacturing in Mexico, in general, have contributed to America’s economic success. Here’s how:
Favorable proximity
For some manufacturers, production in the U.S. isn’t as competitive as in China or Mexico. And, though the cost of labor is comparable between the two, the proximity between the U.S. and Mexico delivers an advantage.
Quality control
It’s also easier to oversee production and maintain quality control when manufacturing in Mexico vs. China. Although, Asia may make more sense if U.S. manufacturers are selling to China or other countries in the region.
To determine the best option, it’s best to work with a Mexico shelter company to perform a cost analysis, evaluating the end-product destination, and the time and cost it takes to get there.
Geographic advantage
Because of the various sectors and facilities available throughout Mexico, there’s support to cover all regions of the U.S. and Canada.
Geographic and time zone alignment create more profitability when it comes to logistics and productivity.
Supply chain stability
Additionally, the USMCA will continue to be beneficial for U.S. manufacturers as Mexico is the top trading partner of the U.S., surpassing China a few years ago.
In 2024, over 80% of total Mexican goods exports were to the U.S., and over 40% of total Mexican goods imports were from the U.S. Total goods and services trade for the year between the two countries totaled $935.1 billion, an increase of 5.5% from 2023.
Rules of origin
There are already favorable provisions in the USMCA with regard to rules of origin for certain goods, including automotive production. These uphold content requirements within North America, strengthening trade between the three countries.
What’s next for the USMCA?
The goal of the review is to have all parties suggest amendments to the agreement, though if all three parties fail to agree to the terms of a renewal, there will be a yearly evaluation process until 2036.
Where does the USMCA review leave companies?
Some companies are waiting to see what changes may be made, but many are taking advantage of the opportunities currently available, such as greater industrial facilities and labor availability in Mexico.
Why it’s favorable to implement shelter services Mexico offers
Working with a Mexico shelter company helps manufacturers reduce risk and liability when launching production. They also maintain strong connections and first-hand information to provide trade agreement updates as they become available.
Moreover, Mexico shelter companies help manufacturers save time and money while initiating a quick startup time. The trade bloc of the U.S., Mexico, and Canada is a win-win setup for all and should continue benefiting industries throughout the region.
Learn how IVEMSA can help companies maintain USMCA compliance and manufacturing success through its shelter services. Contact our team today.
Sources:
https://ustr.gov/countries-regions/americas/mexico