Following recent comments from President Donald Trump questioning the relevance of the United States-Mexico-Canada Agreement (USMCA) for the U.S., attention is turning to what a potential renegotiation could mean for trade relations with Mexico.
RFD NEWS Correspondent Frank McCaffrey spoke with Senator Ted Cruz of Texas, who says trade policy discussions remain active within the administration and that tariffs and the USMCA negotiations can be used together to expand market access for U.S. agriculture.
“I think the best outcome for our farmers and ranchers is to have that leverage work and have foreign markets opened and expanded so that we can export crops, we can export livestock. I think we’re seeing real progress on that, but we need to keep going more and more. And so I keep pressing the administration, take yes for an answer, press to get as much as we can, but when we get as much as we can, take yes for an answer. I think that’s what’s gonna happen.”
Congressman Vicente Gonzalez (D-TX) says future USMCA talks should also address security challenges that impact trade, particularly along the southern border.
“We have criminal organizations taxing trade at the border and in different places around the country, and that’s moving agriculture, that’s moving hard products from point A to point B, and we need to assure that commerce can flow and reach its final destination without being taxed by cartels.”
Cruz says strengthening trade ties with Mexico remains important, noting the country’s economic scale and the benefits of expanded access for U.S. exporters.
“I hope, and what I’m urging the president, is use the USMCA negotiations to further open up our ability to get into Mexico. I’m a big believer in trade and fighting for trade. As you know, I’ve been the leading defender of building new bridges in South Texas, bridges from South Texas to Mexico.”
Trade growth has increased activity at key crossings like the Pharr International Bridge, a major hub for fresh produce shipments between the U.S. and Mexico. McCaffrey reports that the increase in trade has also driven up land values near the bridge.
“Now trade with Mexico has done a lot to make places like the Pharr International Bridge very, very busy. And in recent years, it’s also done a lot to raise the price of an acre of land nearby.”
According to the Pharr Economic Development Corporation, nearby land values have climbed significantly over the past decade. Gonzalez says that growth reflects the expanding role of trade in the region.
“Because of trade, right? They’re going to be building warehouses and businesses and land that was just low-lying fields at one time is now a point of commerce.”
Gonzalez is also calling for the 1944 Water Treaty with Mexico to be renegotiated as part of USMCA discussions, arguing it would help ensure reliable water deliveries for South Texas agriculture. Cruz says he is pursuing legislation to enforce compliance.
“I’ve got legislation that would put additional teeth in the 1944 treaty that would put sanctions on Mexico if it fails to comply. I’m pushing to try to get that legislation passed.”
Cruz says it is still too early to know whether that proposal would ultimately be included in a renegotiated USMCA.
