U.S. TRADE WITH
CANADA AND MEXICO
Supports Millions of Jobs: Trade with Canada and Mexico supports 11 million American jobs
in every state in the Union, according to reports by the Business Roundtable. In fact,
49 U.S. states count Canada or Mexico as one of their top three merchandise export markets.
Drives U.S. Export Growth: U.S. goods exports to Canada and Mexico have expanded
far more since the 2007-2009 recession than U.S. exports to any other country in the
world, accounting for about 40% of the growth in overall U.S. goods exports in dollar terms,
according to Commerce Department data.
Quadrupled in the Past 25 Years: Trade with Canada and Mexico reached nearly $1.3 trillion
in 2017, and the two countries buy more than one-third of U.S. merchandise exports, according to
Commerce Department data.
Vital for U.S. Manufacturers: U.S.-manufactured goods exports to Canada and Mexico
support the jobs of more than 2 million men and women at more than 43,000 manufacturing
firms across the United States, according to the National Association of Manufacturers. Most
U.S. manufacturing sectors (38 out of 42) and most states (46 out of 50) count Canada or
Mexico as their first- or second-largest foreign purchasers.
Essential for Farmers and Ranchers: U.S. agricultural exports to Canada and Mexico
quadrupled from $8.9 billion in 1993 to $39 billion in 2017, according to the American Farm
Bureau Federation, and the two countries are top markets for U.S. grains, dairy products,
meats, fresh fruits, and vegetables. Nearly one-third of U.S. agricultural exports went to our
North American neighbors in 2017, the AFBF adds.
Powers the Service Economy: U.S. services exports to Canada and Mexico tripled from
$27 billion in 1993 to $91 billion in 2017, but America’s highly competitive business services
sector—including firms in such fields as audiovisual, software, architecture, accounting,
engineering and project management, banking, insurance, and many more—continues to
enjoy exceptional export growth.
Boosts American Small Businesses: Canada and Mexico are the top two export destinations
for U.S. small and medium-size enterprises, more than 120,000 of which sell their goods
and services in our two North American neighbors. When an American small business starts
exporting, it’s almost always to Canada or Mexico.
HOW USMCA MODERNIZES NORTH
USMCA modernizes the rules for trade in North America with state-of-the-art
provisions in the following areas:
Market Access: Maintains tariff-free access to the Mexican market for all U.S. goods exports. For
Canada, maintains the current tariff-free access for nearly all U.S. products and eliminates some
remaining barriers facing U.S. dairy and poultry exports. Also prohibits import restrictions on
Digital Trade: Creates best-in-class rules to foster U.S. growth in the digital economy for firms of
all sectors and sizes, for example, guaranteeing the freedom to move data across borders and
prohibiting the forced localization of data, thereby ensuring continued growth for a dynamic area of
Intellectual Property: Secures stronger protections for the full range of patents, copyrights and related
rights, trademarks, designs, and trade secrets as well as strong enforcement tools to guard against
counterfeiting and piracy in order to promote continued U.S. innovation that supports and creates
well-paying jobs across all major sectors of the economy.
Agriculture: In addition to securing outstanding market access, establishes modern, science-based
sanitary and phytosanitary standards that are the strongest achieved in any trade agreement. Provides
transparency and information sharing on measures impacting trade in the products of biotechnology.
Regulatory and Technical Barriers to Trade: Promotes regulatory compatibility and best regulatory
practices for ICT products, pharmaceuticals, medical devices, cosmetics, chemicals, and other
products, while also improving rules prohibiting discriminatory technical barriers to trade.
Financial Services: Ensures a level playing field for U.S. financial institutions, investors and investments
in financial institutions as well as and cross-border trade in financial services on a nondiscriminatory basis.
Customs: Modernizes customs procedures with regard to advanced rulings, simplified entry,
risk management, single window, e-signatures, and self-certification of origin.
State-Owned Enterprises: Establishes rules to ensure that central government state-owned
enterprises (SOEs) do not distort competition in the marketplace by guaranteeing regulatory
impartiality and requiring that SOE decisions be commercially motivated.
Competition Policy: Ensures that antitrust investigations are fair, transparent, and based on sound
Enforcement: Raises the bar with binding enforcement for all chapters, including labor and the