Washington – The Computer & Communications Industry Association submitted comments to the U.S. Trade Representative in response to its request for comments on the operation of the U.S.-Mexico-Canada-Agreement (USMCA). This filing will contribute to the U.S. government’s review of USMCA ahead of the 2026 joint evaluation of the agreement’s economic performance and implementation, which will inform potential renegotiation or extension of the agreement’s terms.
CCIA’s filing emphasizes the importance of preserving USMCA’s high-standard digital trade commitments that have made it a global model for open and innovative markets, particularly provisions ensuring cross-border data flows, prohibiting data localization, and protecting online intermediaries. It cautions against reopening core provisions of the Digital Trade Chapter and instead recommends targeted enhancements, such as new annexes on AI and subsea cables, stronger protections for end-to-end encryption, and exemptions for ICT goods from rules of origin changes, to advance North American digital competitiveness.
The filing also highlights policy barriers in Canada and Mexico to address in advance of the USMCA 2026 joint review, including Canada’s discriminatory Online News Act and Online Streaming Act and Mexico’s cloud localization requirements, content restrictions, and proposed tax measures targeting technology firms, urging USTR to seek their reform or removal.
Given that U.S. digital exports to Canada and Mexico exceeded $75 billion in 2024, CCIA stresses that maintaining USMCA’s digital rules is essential to sustaining U.S. competitiveness, supporting exports of the U.S. AI stack, and strengthening North American supply chain resilience.
The following can be attributed to CCIA’s Vice President for Digital Trade, Jonathan McHale:
“Six years in, USMCA’s digital trade provisions remain the gold standard for enabling open, secure, and innovative markets across North America. These rules have strengthened U.S. competitiveness by ensuring cross-border data flows, prohibiting data localization, and ensuring robust and resilient supply chains, and will be critical to the success of the Administration’s goal of promoting the export of the U.S. AI stack. We look forward to the upcoming review as an opportunity to highlight the tangible benefits these commitments have delivered for U.S. exporters and workers. While continued attention to outstanding bilateral trade barriers in Canada and Mexico is warranted, the case for the renewal of USMCA remains strong.”
