By Rep. Adrian Smith
Six years ago, Washington managed to do something many people thought was impossible. Amidst President Trump’s first term and Democrat leadership in the U.S. House of Representatives, Republicans and Democrats came together to enact the United States-Mexico-Canada Agreement (USMCA).
In today’s political environment, that kind of bipartisan accomplishment feels increasingly rare. However, it happened because lawmakers on both sides recognized how important trade with our North American neighbors is to American workers, manufacturers, and farmers.
Now, six years later, the joint review of USMCA is upon us — a moment of particular importance for Nebraska. While the agreement benefits the entire nation, its impact on Nebraska’s economy is especially significant.
More than 90 percent of Nebraska’s annual corn exports go to Mexico and Canada. From corn and soybeans to beef and ethanol, our producers rely on strong export markets to keep operations running and rural communities growing. In 2024 alone, Nebraska exported more than $1.6 billion in agriculture products to our North American trading partners.
This is why USMCA mattered then — and why it still matters now.
When the agreement was negotiated, it modernized outdated trade rules and included stronger labor protections, updated digital trade standards, and important safeguards for agricultural biotechnology. It was a major step forward and continues to serve as a model for future trade agreements.
But here is the reality: trade agreements only work when every country follows the rules.
As we approach the six-year review of USMCA this July, it is clear there is still more work to be done. Canada continues to create unfair trade barriers for American dairy producers, while Mexico has imposed restrictions and policies which create uncertainty for American agriculture and businesses.
Recently, I became concerned by reports that Mexico’s tax authority — known as SAT — has adopted aggressive enforcement practices targeting American companies operating there. These actions reportedly include retroactive tax interpretations, arbitrary audits, and burdensome appeals processes.
That is why I recently led a letter with 19 of my Republican colleagues to U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, urging the administration to hold Mexico accountable ahead of the USMCA review.
The message was simple: Mexico should not be allowed to balance its budget on the backs of American companies while ignoring commitments made under USMCA. If the agreement is going to succeed long-term, enforcement must be taken seriously.
I also traveled to Mexico to meet directly with Mexican officials during the first round of bilateral negotiations relating to the Joint Review. These conversations are important because strong relationships matter, especially when discussing trade issues affecting millions of jobs and billions of dollars in commerce between our countries.
I believe there is a real opportunity to strengthen USMCA for the future — but only if all parties are willing to live up to the commitments they made.
As Chairman of the Ways and Means Subcommittee on Trade, I will continue working to expand markets for Nebraska agriculture and manufacturing, push back against unfair treatment of American producers and businesses, and ensure trade agreements work for the people who depend on them every day.
Nebraska producers compete with the best in the world, and I will keep working to ensure they have the opportunity to succeed.
