USMCA review raises risks for North American supply chains- Rio Grande Valley Business Journal

Upcoming USMCA review puts South Texas–Mexico trade at risk, negotiator warns

A robotic arm works alongside finished vehicles on an automotive line, underscoring how tightly connected U.S., Mexican, and Canadian production systems have become — including the supply chains that link plants in northern Mexico with manufacturers across South Texas.

North America is entering an “extremely critical moment” ahead of the 2026 USMCA review, according to a former trade negotiator whose firm advises multinational manufacturers operating across the region.

That warning came from Mónica Lugo, a former negotiator of the USMCA and now director of institutional relations at Grupo Prodensa, a consulting firm that supports companies with site selection, expansion, and cross-border operations. As someone who helped negotiate the agreement, she warned that rising protectionism and new tariff threats risk destabilizing more than three decades of economic integration.

“A 30-year commercial relationship is at stake — one that has only proven, with concrete data, to be beneficial for all three countries,” Lugo told the Rio Grande Valley Business Journal. “When you bring protectionist policies like imposing tariffs, quotas, or managed trade, the only thing you’re doing is shooting yourself in the foot.”

A historic moment for North America

During her participation in a binational forum, Lugo emphasized that the region is experiencing a historic turning point shaped by technological transformations, supply-chain reconfiguration, and increasingly intense global competition.