NEMA Senior Director of Global Policy Patrick Lozada today issued the following statement after testifying before The Office of the U.S. Trade Representative (USTR) regarding the USMCA trade agreement:
“America’s electrical manufacturing industry has invested nearly $200 billion in domestic capacity since 2018, representing fully half of U.S. manufacturing investment since 2023. This industry is stepping up to meet booming demand for gas turbines, transformers, switchgear, battery energy storage systems, electrical wire and cable, data center cooling systems, and other goods that will help achieve the Trump Administration’s goals for a more reliable, resilient, and affordable energy and electric power system.
“A predictable international trade policy has been a critical enabler of this success. Thanks to President Trump’s landmark USMCA deal, our industry – the nation’s second-largest exporter of manufactured goods – has decreased dependence on materials from China by more than 32% since 2018.
“The North American electrical industry is highly integrated and provides the region a competitive advantage to combat reliance on China. Continued investment hinges on predictable trade policy that empowers electrical manufacturers to increase production at the rate and scale required to meet anticipated demand. NEMA projects that demand for electric power will increase at least 50% by 2050.
“We urge USTR to pursue a swift review and renewal of the landmark agreement with some key modifications to step-up enforcement, particularly in Mexico, of USMCA provisions eliminating technical barriers to trade. A push to stamp-out fraudulent activity by companies operating in countries not party to the USMCA – namely China – is also welcome.
“Equally important is a trade policy that preserves existing tariff commitments and ensures a stable, predictable, and rules-based policy environment. This is fundamental to a pro-investment, pro-growth trade policy that will lower prices for American consumers and advance the onshoring and friendshoring trends that the U.S. electroindustry is leading.”
NEMA’s response to the USTR’s request for public comments and notice of public hearing [USTR-2025-0004 and USTR-2025-0005] can be accessed here [Submission ID USTR-2025-0004-00122111].