Posted on November 13, 2025 by Justin Williams and Nick Lombardo
When the first Trump Administration negotiated the United States-Mexico-Canada Agreement (USMCA) in 2018, it rebuilt the foundation of North American competitiveness. The USMCA created a market-driven framework that protects American workers, strengthens U.S. industries and gives our country a competitive edge over non-market economies such as China.
The USMCA is successful because it establishes regulatory transparency, the alignment of cross-border standards and the alleviation of trade barriers. This framework fostered a stable environment critical for cross-border investment, innovation and the development of American energy infrastructure. By locking in fair and predictable rules, the USMCA is designed to support America’s competitive strength, ensuring long-term energy and industrial leadership.
Five years later, that framework continues to deliver measurable results for America’s economy, including the energy sector, which remains one of the most strategic sectors for long-term prosperity and security. In 2024 alone, U.S. energy trade with Canada and Mexico totaled nearly $208 billion, fueling millions of jobs and ensuring a stable source of reliable, affordable energy across the continent.
As Washington prepares for the USMCA’s first joint review, policymakers have an opportunity to preserve what works, build on its strengths and resist efforts to inject uncertainty into the most successful trade agreement in modern history.
Energy security is central to America’s competitive advantage. The USMCA secured that advantage by creating a stable and predictable environment for cross-border investment and innovation.
Consider nuclear energy. While the USMCA does not include a dedicated chapter on nuclear energy, the U.S. nuclear sector benefits directly from the core principles of reducing trade barriers, improving regulatory transparency and aligning cross-border standards. These features create the foundation for advanced, high-value energy projects that sustain and expand high-paying American jobs in engineering, construction and manufacturing. A leading example is the partnership between GE Vernova Hitachi and Ontario Power Generation to build North America’s first grid-scale small modular reactor, the BWRX-300. American expertise and industry participation are central to the effort. The Tennessee Valley Authority and Lynchburg, Virginia-based BWXT are key contributors, with BWXT manufacturing the reactor vessel in the U.S.
Uranium mined in Canada is enriched and fabricated into fuel at U.S. facilities, supporting skilled labor and advanced manufacturing across the American supply chain. The same applies to critical minerals, which are essential to America’s energy and manufacturing strength. Canada and the U.S. are each other’s largest trading partners and have a reliable critical minerals supply chain that supports U.S. industry and jobs. By deepening cooperation through trade and investment, the U.S. can secure access to the materials that power advanced technologies, reduce exposure to geopolitical risks and strengthen domestic processing and manufacturing capacity.
The USMCA also provides a stable foundation for cross-border energy infrastructure, from oil and gas pipelines to electric transmission lines. Nearly 70 percent of U.S. crude oil imports originate from Canada and Mexico, ensuring steady feedstock for U.S. refineries that support higher-value American products, such as gasoline and diesel, for domestic use and export. This energy relationship contributes to over $688 billion in annual economic activity and supports nearly three million jobs across the U.S. Predictable cross-border trade and permitting frameworks are critical to maintaining this advantage.
The USMCA’s architects understood that modern competition depends on clear standards, strong investment rules and the regulatory predictability that allows American innovators to lead. Several core principles in key chapters should be reaffirmed and, in some cases, expanded, such as:
The upcoming review is an opportunity to fine-tune a proven model. Several bipartisan ideas now circulating in Congress could strengthen the USMCA’s focus on energy and security, including the following.
The USMCA has proven that pro-growth trade and strong national security go hand in hand. By locking in fair, predictable rules with America’s regional neighbors, the U.S. has strengthened its energy and industrial leadership, supporting millions of high-quality jobs. As the joint review approaches, we encourage policymakers to remember what makes the USMCA work: it favors markets over mandates, innovation over regulation and America’s closest partners over China. ClearPath’s views are detailed further in our public comments for the U.S. Trade Representative’s USMCA review. Preserving and enhancing the USMCA will uphold American energy and manufacturing leadership, reminding the world that when North America is united, the U.S. wins.
