If trade agreements serve as engines for economic growth, then stable and reliable enforcement mechanisms act as their lubricant. The National Electrical Manufacturers Association (NEMA) recently emphasized the critical importance of the United States-Mexico-Canada Agreement (USMCA) during a hearing before the Office of the U.S. Trade Representative (USTR). The association called for expedited review and updates to the pact to ensure predictable implementation.
Patrick LoSada, NEMA’s Senior Director of Global Policy, underscored the agreement’s significance for the electrical manufacturing industry. He stressed that a clear and foreseeable trade environment encourages business investment, fosters innovation, and ultimately generates employment. However, inadequate enforcement and policy uncertainties are currently undermining USMCA’s potential benefits.
LoSada elaborated that robust enforcement goes beyond penalizing violations—it requires establishing transparent and efficient dispute-resolution mechanisms. This demands close collaboration between USTR, Mexico, and Canada to develop and enforce clear rules, ensuring all parties compete on a level playing field.
NEMA also highlighted the necessity of policy predictability. Frequent adjustments and uncertain policy directions increase operational risks for businesses, hindering long-term planning and investment decisions. Regular reviews and updates to USMCA, adapting to evolving global economic conditions, are therefore essential. By strengthening enforcement and enhancing predictability, the agreement can fully realize its potential to boost trade and investment, delivering tangible benefits to the U.S. electrical manufacturing sector.