Covarrubias, Schwebel: The Case for a North American Industrial Coordination Council 

LAREDO, Texas – A new White Paper has been published by the Texas A&M International University Sanchez School of Business.

It is titled, “Toward a North American Industrial Strategy: The Case for a North American Industrial Coordination Council (NAICC)”.

The authors are Dr. Daniel Covarrubias, director of Texas A&M International University’s Sanchez, Jr. School of Business Texas Center, and Gerardo (Gerry) Schwebel, executive vice president of IBC Bank and chairman of the Texas A&M International University Sanchez School of Business Texas Center Advisory Council.

Schwebel is a recognized leader in international trade, cross-border economic development, and finance. He frequently engages with top government and business leaders across North America on U.S.- Mexico trade, transportation, and international finance issues.

Covarrubias’ research focuses on cross-border logistics, supply chain integration, and North American economic relations. He leads the TAMIU Logistechs Living Lab, a research initiative exploring how technologies like AI, blockchain, and IoT can improve cross-border trade efficiency.

“As part of our ongoing work to reimagine North American economic integration ahead of USMCA 2.0, I’m pleased to share a new paper co-authored with Gerry Schwebel, executive vice president of IBC Bank and chairman of the Texas A&M International University Sanchez School of Business Texas Center Advisory Council,” Coavarrubias said.

“Toward a North American Industrial Strategy: The Case for a North American Industrial Coordination Council (NAICC)” presents a comprehensive framework for coordinating industrial policies across the United States, Mexico, and Canada.

“This is the second in our series of papers examining institutional innovations for a strengthened North American integration framework under USMCA 2.0, following our proposal for a Binational Customs Agency.”

Covarrubias listed these key findings:

A five-division institutional structure addressing strategy, resilience, innovation, workforce development, and regulatory harmonization

Clear benefits for each partner nation – from securing critical minerals access for the U.S. to accelerating technological upgrading in Mexico

Pathways for implementing the NAICC through the 2026 USMCA review process

Building on proven bilateral cooperation models while respecting national sovereignty

“This paper addresses a critical gap: while NAFTA and the USMCA created powerful regional economic integration, they lacked the institutional architecture to align industrial development across the continent. The NAICC would facilitate complementary specialization, ensuring each country focuses on areas of comparative advantage while maintaining comprehensive continental industrial capabilities,” Covarrubias said.

“Of particular note is the framework for a North American Standards Skills Council (NASSC), modeled after the Manufacturing Skill Standards Council in the United States. This initiative would develop continental-wide, industry-led skill standards and certifications recognized across all three countries, directly supporting workforce mobility and strengthening the continental labor market’s responsiveness to emerging technologies.”

Additional key initiatives, Covarrubias said, include coordinated joint investment funds for strategic projects, regulatory alignment processes to reduce compliance barriers, and research and innovation networks connecting institutions across all three countries.

Editor’s Note: Click here to read the new White Paper.

Executive Summary

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Here is the executive summary:

North America stands at a critical moment of industrial transformation. As global supply chains evolve and strategic sectors become increasingly important for technological advancement, the United States, Mexico, and Canada have an opportunity to strengthen regional integration by building a framework for more effective industrial coordination.

While NAFTA and, later, USMCA created a powerful foundation for regional economic integration, neither established the institutional architecture needed to align industrial development across the continent. The result has been a growing coordination gap, exposed by recent policy misalignments, tariff volatility, and missed opportunities in critical areas such as electric vehicles, semiconductors, and clean energy. The April 2025 implementation of reciprocal tariffs by President Trump’s Administration, followed by rapid reversals and exemptions, underscored the instability that arises when national policies operate without a regional lens.

The NAICC would help achieve balanced trade within North America, ensuring wealth creation and manufacturing capabilities are distributed across the region in ways that strengthen the continental middle class while reducing collective dependence on extra-regional sources.

A coordinated approach would deliver distinct advantages to each partner nation:

For the United States:

• Secure access to critical minerals and manufacturing capacity, essential for high-tech industries 
• Preserve technological leadership while addressing workforce constraints. 
• Reduce vulnerability to global supply chain disruptions in strategic sectors. 
• Expand the talent pool for high-skilled manufacturing positions through standardized continental certifications.
• For Canada: 
• Expand markets for resource exports through value-added processing. 
• Attract investment in advanced manufacturing linked to U.S. innovation. 
• Ensure regulatory alignment that preserves Canadian standards while enhancing market access. 
• Strengthen domestic workforce development through alignment with continental skill standards.
• For Mexico: 
• Accelerate technological upgrading in manufacturing and production processes. Secure, stable investment flows beyond electoral cycles
• Leverage demographic advantages to continue as an essential production hub.
• E workforce skill development through adoption of standardized, industry-recognized certifications.

This paper proposes the establishment of a North American Industrial Coordination Council (NAICC), a permanent, trilateral institution designed to translate integration into industrial strategy. The NAICC would serve as a platform for aligning national policies, strengthening regional supply chains, and ensuring that innovation, investment, and workforce development efforts mutually reinforce across the continent.

Organized through five specialized divisions focused on strategy, resilience, innovation, skills, and regulation, the NAICC would preserve national sovereignty while enabling joint action where it matters most.

With the 2026 USMCA review on the horizon, the time to act is now. This proposal is not a final blueprint but an invitation to begin building the institutional foundations North American competitiveness requires through open, inclusive, and forward-looking dialogue.

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