Perc Pineda, PhD
Chief Economist, Plastics Industry Association
The Office of the United States Trade Representative (USTR) is seeking public comments on the operation and implementation of the United States-Mexico-Canada Agreement (USMCA) ahead of its 2027 annual joint review. The request, published in the Federal Register on October 5, 2026, invites businesses, trade associations, and other interested parties to share their views on the agreement and recommend actions to strengthen North American trade and competitiveness.[i] For companies and organizations across the plastics value chain, this is an opportunity to communicate priorities and provide practical recommendations to inform the next phase of the USMCA review.
The review follows the first joint review on July 1, 2026, when the United States did not agree to extend the agreement for another 16-year term. Under the USMCA, annual joint reviews will continue until all three countries agree to extend the agreement or its current term expires on July 1, 2036.
USTR is inviting comments on USMCA implementation and compliance, recommendations for the 2027 review, factors affecting investment across North America, and strategies to strengthen regional economic security and competitiveness. These issues are relevant to the plastics industry, given the importance of U.S.-Mexico-Canada trade and integrated North American supply chains.
What’s at Stake for the U.S. Plastics Industry?
Mexico and Canada are the largest export markets for the U.S. plastics industry. Year to date (YTD) through August 2026, U.S. plastics industry exports—the combined total of resins, plastics products, machinery, and molds—to Mexico totaled $13,781.8 million, while exports to Canada totaled $9,411.3 million. Compared with the same period last year, exports to Mexico and Canada increased by 4.9 percent and 0.3 percent, respectively.
Over the same period, U.S. imports from Mexico and Canada totaled $5,970.2 million and $9,593.1 million, respectively, representing increases of 5.7 percent and 2.1 percent from the same period last year.
As a result, the United States continued to record a plastics trade deficit with Canada, reaching $181.8 million YTD, up significantly from $10.8 million over the same period last year. Meanwhile, the U.S. plastics trade surplus with Mexico increased by 4.2 percent to $7,811.6 million YTD compared with the same period last year.
Does Trade Dependence Matter for All Three Countries?
With the USMCA entering its annual review phase, it is worth noting that the three countries have different levels of exposure to international trade. According to the World Bank, trade in goods and services was equivalent to 63.51 percent of Canada’s GDP and 79.92 percent of Mexico’s GDP in 2025. For the United States, the comparable figure was 25.02 percent, based on 2024 data. These figures illustrate the relative importance of trade to each economy, although the U.S. figure is for a different year.
The differences reflect the size and structure of the three economies. Canada and Mexico rely more heavily on international markets relative to their economic output, while the much larger U.S. economy has a substantial domestic market. However, the lower U.S. trade-to-GDP ratio does not mean that the United States has less at stake in North American trade. It means that trade represents a smaller share of total U.S. economic activity. There is an opportunity to expand trade among the three countries while increasing North American content and further strengthening regional supply chains.
As the 2027 USMCA review approaches, the plastics industry has an opportunity to help shape a trade framework that supports investment, strengthens North American supply chains, and enhances the competitiveness of manufacturers across all three countries. Given the importance of Canada and Mexico as export markets for U.S. plastics, maintaining predictable trade rules and addressing barriers to market access will be critical. Industry input can help ensure that the review reflects the practical realities of cross-border trade and the shared economic interests of North American businesses.
[i] Written comments are due January 12, 2027, by 11:59 p.m. EST. Interested parties may also request to testify at a public hearing, submitting a summary of their proposed testimony by the same deadline. USTR will announce the hearing date and location separately. Post-hearing rebuttal comments may be submitted within seven calendar days after the hearing concludes.
How to participate: Submit comments through the USTR online portal. Written comments should be filed under docket USTR-2026-0595. Requests to appear at the hearing and summaries of testimony should be filed under docket USTR-2026-0596.
