Phoenix AZ – February 22, 2026 | By STAFF HERE PHOENIX WRITER
WHAT’S HAPPENING
What are the key findings of Arizona’s USMCA Economic Study released January 23, 2026?
The study found strong support from Arizona businesses for retaining and enhancing the USMCA, with over 85% fearing negative impacts if it’s not renewed.
When is the USMCA joint review scheduled to take place?
The USMCA agreement mandates a joint review process scheduled for July 2026, assessing its performance and potential extension.
What are Arizona’s main recommendations for enhancing the USMCA?
Recommendations include reintroducing the Certificate of Origin, ensuring consistent standards, and improving cross-border infrastructure for trade with Mexico and Canada.
What is Arizona’s trade relationship with Mexico and Canada?
Mexico is Arizona’s top trading partner, and Canada is second. In 2024, Arizona exported approximately $9 billion to Mexico and $2.8 billion to Canada.
Arizona Governor Katie Hobbs released a USMCA Economic Study on January 23, 2026, confirming the vital role of trade with Mexico and Canada for the state’s economy. The report, by ASU’s Seidman Research Institute, indicates strong business support for enhancing the current agreement ahead of the 2026 joint review. Over 85% of businesses fear negative impacts if the USMCA is not renewed, citing potential disruptions and increased costs.
Arizona Governor Hobbs’ USMCA Study Reinforces Economic Benefits, Outlines 2026 Trade Priorities
Governor Katie Hobbs of Arizona released the findings of Arizona’s United States-Mexico-Canada Agreement (USMCA) Economic Study on January 23, 2026, emphasizing the critical role of trade relationships with Mexico and Canada for the state’s economy. The report, conducted by the Seidman Research Institute at Arizona State University, underscores overwhelming support from Arizona’s business community for maintaining and enhancing the USMCA, rather than renegotiating it, in anticipation of the 2026 joint review.
The study provides Arizona-specific data and business insights on cross-border trade and investment, highlighting Mexico as Arizona’s top trading partner and Canada as its second. This initiative aims to ensure that future North American trade policy accurately reflects the needs and priorities of Arizona’s businesses and workers as the 2026 USMCA joint review approaches.
Key Findings from Arizona’s USMCA Economic Study
The comprehensive analysis engaged businesses and participants across key Arizona sectors, including advanced manufacturing, agriculture, construction, mining, transportation, and logistics. A significant majority of Arizona’s business community believes the USMCA is a driver of cost efficiency and supply chain resilience, and an essential tool for facilitating cross-border business and cooperation.
The report concluded that over 85 percent of survey respondents indicated that Arizona would be negatively impacted if the USMCA is not renewed, potentially leading to trade and supply chain disruptions, higher costs for businesses and consumers, and job losses in industries reliant on trade with Mexico and Canada. Arizona businesses do not support replacing the USMCA with a series of binational agreements or tariffs.
What are Arizona’s Recommendations for Enhancing USMCA?
The study also put forth recommendations to strengthen Arizona’s competitiveness within the USMCA framework. These include reintroducing the Certificate of Origin for supply chain clarity, ensuring consistent application of USMCA standards such as labor and health across all three nations, and prioritizing improvements to cross-border infrastructure. The report also suggested considering increased cooperation in critical minerals, pharmaceuticals, food supply, and entertainment.
The USMCA’s Broader Economic Impact on Arizona
Arizona’s economy is deeply intertwined with Mexico and Canada, with these two countries representing crucial partners. In 2024, Arizona exported approximately $9 billion in goods to Mexico and another $2.8 billion to Canada. Overall, nearly a third of Arizona’s total exports head to these two markets.
The USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, modernized trade rules to support digital commerce, protect intellectual property, and facilitate the movement of goods and services, providing stability and growth opportunities for Arizona’s technology sector. This framework has been instrumental in bolstering North American supply chains and further integrating and collaborating between the allied nations.
Background on the 2026 USMCA Review
The USMCA agreement includes a mandated joint review process to take place in July 2026, which will assess its performance and determine its future, including a potential extension through 2036. This review is an opportunity for the United States, Mexico, and Canada to evaluate the functioning of the agreement and make improvements to strengthen its future operations and North American competitiveness. The U.S. government opened a period for public comments in September 2025, followed by a public hearing, to gather input from interested parties.
Summary of Arizona’s USMCA Economic Study Key Features
| Feature | Details |
|---|---|
| Release Date of Findings | January 23, 2026 |
| Commissioned By | Governor Katie Hobbs and the Arizona-Mexico Commission (AMC) |
| Conducted By | Seidman Research Institute at Arizona State University |
| Purpose of Study | Detail positive impact of trade with Mexico and Canada, inform 2026 USMCA joint review |
| Key Finding on USMCA Retention | Arizona’s business community overwhelmingly supports retaining and enhancing the agreement |
| Arizona’s Top Trading Partners | Mexico (1st) and Canada (2nd) |
| Key Sectors Surveyed | Advanced manufacturing, agriculture, construction, mining, transportation, logistics |
| Recommendations Highlighted | Reintroduce Certificate of Origin, consistent application of standards, cross-border infrastructure improvements, cooperation in critical minerals/pharmaceuticals/food/entertainment |
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Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
