Key Takeaways  1

Introduction  3

Background: The Importance of a North American Economic Bloc  4

The USMCA as a Counterweight to China  4

The USMCA for Regional Competitiveness: Case Studies  5

The Automotive Industry  6

Semiconductor Production  6

Foreign Investment  7

Jobs and the North American Workforce  7

Negotiation Pathways  9

Why CUSMA Matters for Canada  12

Historical Context  12

The Current State of Canada-U.S. Relations  13

CUSMA Provides Trade and Investment Certainty  13

The Specter of the End of the USMCA Demonstrates Its Strength  14

CUSMA Strengthens North American Supply Chains and Attracts Investment to Canada  16

Modern Trade Rules for a Digital Economy  16

CUSMA Protects Canada  17

Why T-MEC Matters for Mexico  17

T-MEC as the Foundation of Mexico's Export Economy  18

Nearshoring, Investment, and Competition With China  19

Labor, Industrial Policy, and Political Sustainability  20

Why Timely Reauthorization Is Critical for Mexico  21

Why THE USMCA Matters for the United States  22

USMCA Helps the United States Maintain Its Leadership in Digital Products and Services  23

USMCA Strengthens U.S. National Power Industries  26

Conclusion  30

Endnotes  32