USMCA "reimagining" discussed in Brownsville panel

BROWNSVILLE, Texas (ValleyCentral) — The United States-Mexico-Canada (USMCA) Trade Agreement is set to undergo review soon, and this is prompting several entities to prepare strategies for presenting their views on the trade deal.

Brownsville Mayor John Cowen delivered the keynote address, emphasizing the importance of maintaining strong trade relationships with the U.S.'s neighbors to the north and south. He also addressed how trade has a positive impact on the local economy.

“Integration is no longer optional," Cowen said. "It is the key to a cleaner, faster, smarter, and more inclusive economy. Brownsville is ready, and let's meet this transformation together."

Panelists and students at the event say more needs to be done to make North America a more powerful economic bloc.

Matamoros University student Valeria Aguas understands the importance of commercial trade for both countries.

"It's very important because it covers everything," Aguas said. "People’s lifestyle depends heavily on it."

She understands that much needs to improve even in her native Mexico to also become an economic power as well, and have leverage.

"Although the relationship is good, Mexico still has room for improvement in terms of infrastructure, technological advancement, and educational support through scholarships, to develop a more skilled population," Agua said.

Texas Center for Border Economic and Enterprise Director Dr. Daniel Covarrubias has proposed several solutions, like making the U.S. Customs and Border Protection (CBP) and Mexico's National Customs Agency of Mexico (ANAM) into one binational customs agency for better efficiency and security.

“There’s this digital wall where the systems that CBP uses and the system that ANAM used have no communication protocols between them, and that can facilitate that communication, and they have to work in that," Covarrubias said.

He has also proposed a unified industrial policy for all three countries in the agreement, instead of each country having its own. He also wants to see how countries take on the role of artificial intelligence.

The idea of a binational workforce was also discussed. However, UTRGV Economic Professor Dr. Salvador Contrearas believes that it will not be on the table in the negotiations.

“We know it happens and you could be able to get visas to go work in a country for a temporary basis, but currently and politically," Contreras said. “It doesn’t sound appealing to many people who decide these sorts of policies.”

Contreras says another challenge is balancing the manufacturing goals of all three countries as the U.S. pushes to boost its production capacity.

When talks begin, security will be a core topic.

"Fentanyl, illegal immigration, and talking about arms crossing into Mexico," Covarrubias said. "Those three things are going to be included in the review. So now, the only thing is how are we going to get them in there and what steps are going to be taken to be able to work on these issues while at the same time maintaining the importance of cross-border trade."

Covarrubias expects the U.S. To begin its review of the USMCA as early as October.