Borderlands Mexico is a weekly rundown of developments on the planet of United States-Mexico cross-border trucking and commerce. This week: Trump mulls scrapping USMCA as trade teams push for renewal; DP World opens Querétaro warehouse to assist Mexico’s nearshoring increase; and East Coast Warehouse & Distribution launches first Texas operation.
Whereas main trade teams are urging federal authorities to increase the U.S.–Mexico–Canada Settlement (USMCA) for one more full 16-year time period, the Trump administration mentioned it’s contemplating scrapping the commerce pact and negotiating a brand new one.
U.S. Commerce Consultant Jamieson Greer instructed Politico “the president’s view is he solely desires offers which might be a superb deal. The explanation why we constructed a evaluate interval into USMCA was in case we would have liked to revise it, evaluate it or exit it.”
Greer, who mentioned the USMCA with Politico’s White Home bureau chief Dasha Burns in a podcast episode that aired Friday, mentioned Trump has additionally raised the concept of negotiating individually with Canada and Mexico and dividing the settlement into two components.
The U.S., Mexico and Canada are getting ready for the primary six-year joint evaluate of the USMCA in 2026. The USMCA was negotiated throughout Trump’s first time period as president and changed the North American Free Commerce Settlement in 2020.
Regardless of the potential of the U.S. withdrawing from the commerce pact, a number of commerce and enterprise organizations mentioned USMCA has grow to be a cornerstone of North American financial integration.
At a collection of public hearings at a USMCA panel in Congress, the American Attire & Footwear Affiliation (AAFA), the Nationwide Grain and Feed Affiliation (NGFA) and the Nationwide Taxpayers Union (NTU) voiced robust assist for sustaining USMCA’s duty-free market entry and present guidelines of origin.
AAFA mentioned the settlement has grow to be an important basis for the textile, attire and footwear provide chain linking all three international locations.
“From cotton to shopper there’s a tightly woven provide chain that binds collectively a community of employees, farmers, and employers all through Mexico, the U.S. and Canada,” AAFA Vice President Beth Hughes mentioned in a information launch. “The USMCA permits this provide chain, setting clear and predictable floor guidelines and articulating a long-term incentive construction that powers jobs, investments, and regional commerce.”
NGFA additionally pressed for a full renewal with out altering the settlement’s core phrases, citing the important position Mexico and Canada play as U.S. export markets for corn, soybeans and wheat.
“Mexico and Canada are two of crucial export markets for U.S. corn, soybeans, wheat, and different commodities,” Seyfert mentioned in his testimony. “Mexico, specifically, bought greater than $12 billion in U.S. grain and oilseed merchandise final 12 months and is anticipated to surpass China as our largest export buyer.”
The NTU inspired the Trump administration to protect USMCA’s zero-tariff construction whereas exploring modernization measures equivalent to up to date digital commerce provisions, improved national-security exceptions and streamlined compliance necessities for small companies.
In the meantime, California avocado growers raised sharply completely different issues, warning that USMCA’s present construction leaves home producers more and more uncovered to pest threats and market pressures.
California Avocado Fee President Ken Melban instructed the panel that modifications made in 2024 to Mexico’s avocado inspection system — eradicating U.S. APHIS inspectors from orchard and packinghouse oversight — have led to greater than 150 pest interceptions in simply 4 months, a degree he known as “a critical infestation danger ready to occur.”
Melban urged the U.S. to reinstate the 1997 APHIS-led inspection necessities and formalize them underneath USMCA. Melban additionally pointed to surging low-priced imports as a serious risk: Mexican avocado exports to the U.S. climbed 312% over 14 years, whereas California grower ranks fell 55% and common costs dropped to $1.08 per pound.
“Whereas imports thrive, the trendlines for our trade all level to say no,” Melban mentioned.
Ports and logistics operator DP World has opened a 117,000-square-foot multi-customer warehouse in Querétaro, Mexico, to strengthen its third-party logistics (3PL) capabilities as producers proceed shifting manufacturing to the nation, based on a information launch.
The Querétaro facility, situated in La Bomba Industrial Park in El Marqués, expands the corporate’s nationwide logistics footprint and helps rising nearshoring-driven demand.
The location — DP World’s first multi-customer operation within the Bajío area — gives direct entry to Freeway 57 and proximity to Querétaro Intercontinental Airport, making it a key hub for automotive, industrial, and know-how provide chains.The warehouse contains 6,168 pallet positions, a mixture of racked and flooring storage, and anticipated throughput of 17–20 forty-foot equal models per week.
DP World now employs almost 800 logistics professionals in Mexico and continues to scale providers throughout North America.
Headquartered in Dubai, United Arab Emirates, DP World is without doubt one of the world’s largest container terminal operators, with 108,100 staff in 74 international locations on six continents. The corporate additionally offers logistics options, maritime providers and free commerce zones.
East Coast Warehouse & Distribution is increasing into Texas with a brand new $57.5 million temperature-controlled logistics facility in Baytown, based on a information launch.
The brand new facility will likely be situated about 9-miles from Port Houston’s Barbours Lower and Bayport container terminals. The undertaking will create 65 jobs and marks the corporate’s first operation within the state.
The 321,440-square-foot facility, situated at 9200 FM 1405, will present public warehousing and function a base for Safeway Trucking. An extra 8.5 acres will assist parking and storage for 275 trailers and containers. CEO Jamie Overley mentioned the Houston growth strengthens the corporate’s nationwide footprint and helps prospects with end-to-end temperature-controlled logistics options.
The publish Borderlands Mexico: Trump mulls scrapping USMCA as trade teams push for renewal appeared first on FreightWaves.
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