As the United States–Mexico–Canada Agreement (USMCA) approaches its 2026 joint review, Governor Katie Hobbs is spotlighting Arizona’s deep economic ties with its North American neighbors. On Thursday, she released a new study detailing the trade pact’s benefits for the state and outlining steps to strengthen its role in Arizona’s future growth.
The report, presented at an event titled USMCA Report on the Future of North American Trade, emphasizes that Arizona’s economy depends heavily on its cross-border relationships—Mexico is the state’s top trading partner, followed by Canada. Findings from the study, commissioned through the Seidman Research Institute at Arizona State University, indicate that Arizona’s business community overwhelmingly supports renewing and improving the USMCA, rather than renegotiating or replacing it.
“Protecting and strengthening our trade partnerships is essential to our emergence as a leading global economic hub,” Hobbs said. “The USMCA renewal process is an opportunity to reaffirm our commitment to a competitive and resilient North America.”
The study draws on surveys and interviews with leaders from key sectors such as advanced manufacturing, agriculture, construction, and logistics. More than 85% of participants warned that failing to renew the USMCA could harm Arizona’s economy, potentially causing supply chain disruptions, increased costs, and job losses in industries tied to trade with Mexico.
Recommendations outlined in the report include restoring a Certificate of Origin for manufacturers, ensuring consistent labor and health standards across borders, investing in cross-border infrastructure, and expanding cooperation in areas like critical minerals, pharmaceuticals, and food supply.
Business leaders and trade advocates praised the study for amplifying Arizona’s voice in continental policy discussions. Sandra Watson, president and CEO of the Arizona Commerce Authority, said the report “offers a road map to advance trade policy that supports Arizona families and businesses.”
Todd Sanders, president of the Greater Phoenix Chamber of Commerce, called the report a “collective voice” for Arizona’s interests in the upcoming USMCA review.
Industry representatives echoed the sentiment, pointing to the agreement’s impact on supply chain stability, manufacturing investment, and regional security. Leaders from companies like Lucid Motors, St. Clair Technologies, and the Fresh Produce Association of the Americas credited USMCA with sustaining Arizona’s trade-driven industries and keeping the state at the forefront of North American commerce.
The full study, available through the Arizona-Mexico Commission, will inform Arizona’s recommendations during the trilateral review process later this year.
