Apparel, Textile and Retail Trade Bodies Urge Renewal of USMCA at 2026 Review
Leading apparel, textile, footwear, and retail trade organizations from the United States, Canada, and Mexico have jointly called on their governments to preserve and renew the United States-Mexico-Canada Agreement (USMCA) during its scheduled 2026 review. The appeal comes amid uncertainty following comments by US President Donald Trump suggesting that the agreement may not be renewed due to concerns over trade imbalances with Canada and Mexico.
The USMCA, which replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020, serves as the foundation for nearly $1.6 trillion in annual trade between the three North American economies. Industry groups argue that the agreement has strengthened regional manufacturing, supported investment, and created a stable business environment for companies operating across borders.
In a joint letter addressed to US Trade Representative Ambassador Jamieson Greer, Mexico’s Secretary of Economy Marcelo Ebrard, and Canada’s Minister Dominic LeBlanc, major industry associations urged policymakers to maintain the agreement’s core framework. The letter was signed by prominent organizations, including the American Apparel & Footwear Association (AAFA), National Retail Federation (NRF), Footwear Distributors and Retailers of America (FDRA), United States Fashion Industry Association (USFIA), Retail Industry Leaders Association (RILA), Asociación Nacional de Tiendas de Autoservicio y Departamentales (ANTAD), Cámara Nacional de la Industria del Vestido (CANAIVE), Canadian Apparel Federation (CAF), Network Association of Uniform Manufacturers & Distributors (NAUMD), and the Retail Council of Canada (RCC).
The organizations emphasized that the USMCA plays a vital role in supporting millions of jobs across the textile, apparel, footwear, and retail sectors throughout North America. They noted that highly integrated supply chains have been developed over several decades, enabling efficient movement of raw materials, textiles, apparel, footwear, and finished products between the three countries.
According to the letter, preserving duty-free treatment for goods that qualify under the agreement and maintaining strong, enforceable, and practical rules of origin are essential for continued regional competitiveness. These provisions help manufacturers and retailers reduce costs while encouraging investment and production within North America.
The industry groups also warned that any significant changes to the agreement or uncertainty surrounding its future could disrupt supply chains, delay investment decisions, and increase costs for businesses and consumers. They stressed that predictable trade rules are especially important as companies continue to navigate global economic challenges and evolving sourcing strategies.
“The USMCA underpins North American supply chains by establishing clear and predictable rules and providing a long-term framework that supports jobs, investment, and regional trade,” the letter stated. “Maintaining the Agreement’s core structure will help avoid unnecessary trade disruptions and business uncertainty.”
The signatories reaffirmed their commitment to working closely with government officials throughout the review process. They offered to serve as industry partners and technical resources to ensure the agreement continues to support economic growth, regional manufacturing, and cross-border trade.
With the mandatory 2026 review approaching, the future of the USMCA will be closely watched by businesses across North America. Industry leaders believe renewing the agreement without weakening its core provisions will be essential to maintaining the region’s competitiveness in the global textile, apparel, footwear, and retail markets.
