USMCA Forward 2023 2023 Report Overview USMCA TRACKER USMCA initiative INTRO Letter from the Editors 01 National Security 02 Imports from Asia 03 Human Capital 04 Services 05 Non-tariff Measures 06 Data Flows and Critical Technologies 07 Labor Standards 08 Transparency USMCA Forward: Building more integrated, resilient, and secure supply chains in North America Download the 2023 report Overview The United States-Mexico-Canada Agreement (USMCA) provides the regulatory certainty and market access guarantees that underpin North American trade and investment. This report addresses the importance of USMCA for North America in supporting the goal of building more integrated, secure, and resilient supply chains and discusses what additional investment and policies are needed. It includes contributions from experts from the U.
S. , Canada, and Mexico, as well as viewpoints from senior government officials, leaders in business, academia, and civil society. INTRO Letter from the editors In their overview of this year’s report, Joshua P.
Meltzer and Brahima S. Coulibaly note that several recent pieces of U. S.
legislation are potential gamechangers when it comes to expanding manufacturing and supply chains in North America. However, to fully realize these opportunities, additional investment and policies will be needed in areas such as labor market training and education, access to business services, ensuring supply chains are free of forced labor, enabling data flows, and aligning on regulation and non-tariff measures. Read Introduction Viewpoints Strategic partner of choice: Canada's role in enhancing North American supply chain resiliency By François-Philippe Champagne The USMCA in 2023: Opportunities and challenges By Claudia Ruiz Massieu 01 National Security Supply chains built around efficiency can create national security risks.
Bradley Martin discusses the role of the USMCA in building more resilient supply chains, increasing national security, and harnessing economic competitiveness to reduce risk and cultivate resiliency. Read Chapter 1 Viewpoints North American competitiveness: A team effort By Lance Fritz 02 Imports from Asia Despite significant new subsidies that should lead to some nearshoring in North America, challenges remain. David Dollar assesses the barriers particularly in Mexico, where the investment environment and infrastructure compare unfavorably to peers in Asia.
He also discusses the ongoing importance of engagement with Asia and China in building competitive North American supply chains. Read Chapter 2 Viewpoints Raising labor standards: A means towards a more competitive North America By Liz Shuler 03 Human Capital Addressing Mexico’s education gaps and lack of skilled workforce will be key if Mexico is to fully benefit from the opportunities to expand North American supply chains. Sylvia B.
Ortega Salazar discusses pathways to equip the Mexican workforce with the skills to participate more fully and productively in manufacturing and international trade. Read Chapter 3 Viewpoints USMCA positions North America for global competitiveness By Jay Timmons 04 Services Business services are a core value add for manufacturing, accounting for approximately 27 percent of manufacturing export value in many countries and closer to 50 percent when accounting for services produced in house. J.
Bradford Jensen analyzes the role of business services in North American trade and highlights areas for opportunity, such as the gap in business services for sophisticated supply chains in Mexico and the relevant education required to fill this gap. Read Chapter 4 Viewpoints Mexico at the crossroads: The golden opportunity of nearshoring and energy policy as its Achilles’ heel under USMCA By Lourdes Melgar 05 Non-tariff Measures Some progress has been made on reducing non-tariff barriers (NTBs) to trade, however, important challenges remain to minimize unnecessary costs and increase competitiveness in North American supply chains. Beatriz Leycegui lays out improvements with respect to NTBs and discusses next steps to address unnecessary NTBs that can hinder growth in supply chains.
Read Chapter 5 Viewpoints Building a North American electric vehicle supply chain By Brian Kingston 06 Data Flows and Critical Technologies Critical technologies present unprecedented opportunities for efficiency and economies of scale. Dan Ciuriak discusses the role of USMCA in reducing regulatory uncertainty around data flows and investment risk. Read Chapter 6 Viewpoints Reliable and efficient clean energy supply is key to North American integration By Valeria Moy 07 Labor Standards Labor standards and human rights considerations can be powerful drivers of supply chain resilience and risk mitigation.
Kevin Kolben highlights how the USMCA labor chapter and rapid response mechanism offer an avenue for higher business efficiency and resilience. For example, holding trade sectors accountable to international labor standards can decrease strikes, increase customer support for goods, and avoid forced labor in supply chains. Read Chapter 7 Viewpoints Unfair competition under the USMCA: The case of migrant workers on US farms By Jennifer Gordon 08 Transparency Visibility into supply chains is important to accurately assess and determine the risk of using inputs made with forced labor, to account for environmental harms, and to minimize risk when reshoring key industries.
Thomas Ewing and Alan Bersin discuss how federated learning can be used to gain these insights and what it might mean for North American supply chains. Read Chapter 8 Related Event USMCA: Building more integrated, resilient, and secure North American supply chains On February 28, the Global Economy and Development program at Brookings will hold an event to launch the second annual flagship report of its USMCA initiative on building more integrated, resilient, and secure supply chains. Interactive USMCA Tracker Explore data on trade, investments, meetings, and trade disputes under the United States-Mexico-Canada Agreeement.
Report USMCA Forward 2022: Building a more competitive, inclusive, and sustainable North American economy In the inaugural USMCA Forward report, experts from the United States, Mexico, and Canada examine key priorities and challenges to building a more competitive, inclusive, and sustainable North American economy. The Brookings Institution Facebook Find us on Facebook Twitter Find us on Twitter YouTube Find us on YouTube Podcast Listen to our Podcast Browse Newsletters Browse Newsletters RSS Subscribe to our RSS Languages Español 中文 عربي About Us Research Programs Find an Expert Careers Contact Terms and Conditions Brookings Privacy Policy Copyright 2023 The Brookings Institution.
