Borderlands Mexico: Trump Mulls Scraping USMCA as Industry Groups Push for Renewal
The Borderlands Mexico weekly update focuses on key developments impacting U.S.-Mexico cross-border trucking and trade. This week’s headlines include the potential for the Trump administration to revise or abandon the U.S.-Mexico-Canada Agreement (USMCA), strong industry advocacy for its continued operation, the expansion of DP World’s logistics capabilities in Mexico, and the entry of East Coast Warehouse & Distribution into the Texas market.
USMCA Review and Industry Support
A significant focus this week centers on the future of the USMCA. While major industry groups are advocating for a full 16-year renewal of the trade pact, the Trump administration is considering alternative approaches, including a potential termination of the agreement or negotiation of a revised version. U.S. Trade Representative Jamieson Greer stated that President Trump’s view is solely based on securing a “good deal,” referencing the review period built into the USMCA as a provision for potential revisions or exit. The administration is reportedly exploring separate negotiations with individual trading partners, particularly Canada and Mexico, potentially dividing the agreement into two distinct frameworks. As of 2026, the U.S., Mexico, and Canada are scheduled to undertake their first joint six-year review of the USMCA. The agreement, established during Trump’s first term, replaced the North American Free Trade Agreement in 2020 and remains a cornerstone of North American economic integration according to many industry stakeholders.
Several prominent trade and business organizations have voiced unwavering support for maintaining the USMCA’s established duty-free market access and existing rules of origin. At a series of public hearings held during a USMCA panel discussion in Congress, the American Apparel & Footwear Association (AAFA), the National Grain and Feed Association (NGFA), and the National Taxpayers Union (NTU) all emphasized the need to preserve the agreement. Beth Hughes, Vice President of AAFA, highlighted the critical role the USMCA plays in facilitating a tightly woven supply chain encompassing cotton, apparel, and footwear across the three countries. This interconnected network relies on clear, predictable rules, fostering job creation and regional trade investments. The National Grain and Feed Association (NGFA) similarly underscored the agreement’s importance for the export of corn, soybeans, and wheat to Mexico and Canada, noting that Mexico currently represents a vital export market, purchasing over $12 billion in U.S. grain and oilseed products last year and is projected to surpass China as a key customer. The National Taxpayers Union (NTU) encouraged the administration to protect USMCA’s zero-tariff structure and explore modernizing provisions, such as incorporating updated digital trade measures, national-security exceptions, and streamlined compliance requirements for small businesses.
However, concerns remain, particularly among California avocado growers. The current USMCA structure has exposed them to increased pest threats and market pressures. Ken Melban, President of the California Avocado Commission, expressed significant concerns related to Mexico’s revised avocado inspection system, which, following a removal of U.S. APHIS inspectors, has resulted in more than 150 pest interceptions within a four-month period. He termed this a “serious infestation risk” and urged the U.S. to reinstate the 1997 APHIS-led inspection criteria and formally integrate them into the USMCA framework. Furthermore, Melban highlighted the rising threat of low-priced Mexican avocado imports, noting a 312% increase over 14 years in Mexican exports to the U.S., coupled with a 55% decline in California grower ranks and an average price reduction to $1.08 per pound.
DP World Expands Logistics Footprint in Mexico
In a related development, logistics operator DP World has established a new multi-customer warehouse in Querétaro, Mexico, to bolster its third-party logistics (3PL) capabilities, driven by the ongoing “nearshoring” trend. Located in the La Bomba Industrial Park in El Marqués, the 117,000-square-foot facility significantly expands DP World’s logistics footprint and supports growing demand. The site, DP World’s first multi-customer operation in the Bajío region, provides direct access to Highway 57 and proximity to Querétaro Intercontinental Airport. The warehouse features 6,168 pallet positions, a mix of racked and floor storage, and is expected to handle 17–20 forty-foot equivalent units per week. DP World, headquartered in Dubai, United Arab Emirates, employs nearly 800 logistics professionals across Mexico and continues to scale its services across North America.
East Coast Warehouse Announces Texas Entry
East Coast Warehouse & Distribution has expanded its operations into Texas with a new $57.5 million temperature-controlled logistics facility in Baytown. Situated approximately 9-miles from Port Houston’s Barbours Cut and Bayport container terminals, the 321,440-square-foot facility creates 65 jobs and marks the company’s initial venture into the state. The project is strategically located and supports a 8.5-acre expansion area for trailer and container parking. CEO Jamie Overley stated that this Houston expansion strengthens the company’s national footprint and supports customers requiring end-to-end temperature-controlled logistics solutions. The facility will serve as a base for Safeway Trucking.
Conclusion
This week’s Borderlands Mexico update showcases a dynamic landscape shaped by trade policy considerations, logistical expansion, and regional market shifts. The potential revision of the USMCA remains a central concern, while DP World’s strategic investments in Mexico and East Coast Warehouse’s entry into Texas demonstrate the ongoing evolution of the cross-border supply chain.