Fair Trade Groups Seek Overhaul of USMCA as 2026 Renegotiation Approaches

The U.S.-Mexico-Canada Agreement (USMCA) is set for a high-stakes renegotiation this July, and fair trade advocacy groups are already mounting a campaign for sweeping structural changes. The agreement, which replaced the North American Free Trade Agreement (NAFTA) six years ago during President Donald Trump’s first term, is under intense scrutiny for reportedly failing to meet its original economic promises.

Katie Hettinga, a policy analyst for Rethink Trade at the American Economic Liberties Project, argues that the deal has not delivered the "revitalized" U.S. industry or the end of offshoring that was touted during its inception. Despite the use of fluctuating tariffs aimed at narrowing the trade gap, recent reports indicate that manufacturing jobs have declined while trade deficits with both Canada and Mexico have expanded.

A primary concern for advocates is the continued trend of American companies relocating manufacturing facilities to Mexico. Experts suggest that as long as Mexican wages remain significantly lower than those in the U.S. and China, the incentive for offshoring remains high. To counter this, fair trade groups are recommending that the upcoming negotiations prioritize supporting higher wages in Mexico to strengthen its domestic market and increase demand for U.S. exports.

In the agricultural sector, groups are pushing for the reinstatement of mandatory "country of origin" labeling (COOL). Advocates believe this transparency is essential for consumers to make informed decisions about their food sources. Furthermore, they are calling for "rules of origin" to include all stages of food production and for new provisions that grant farmers the legal "right to repair" their own equipment.

Public pressure is expected to build through the spring. The nonprofit Trade Justice Education Fund has announced a series of rallies scheduled for May and June, including a major demonstration planned for June 27 in San Diego, just weeks before the formal renegotiation process begins.

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By Suzanne Potter - Producer

Apr 28, 2026