Maintaining a deeply integrated continental network throughout the North American rail sector is critical to its operations and security. Due to the rail network’s extensive interconnectedness, a robust United States-Mexico-Canada Agreement (USMCA) is crucial.
Economically, USMCA has supported seamless cross-border trade in rail equipment, well-paying industrial jobs in the United States , and the competitiveness of a shared rail manufacturing base that adheres to market-based, not mercantilist, rules and policies.
Given this importance, the upcoming USMCA Joint Review provides a rare and valued opportunity to:
- Reaffirm the trilateral framework that has enabled the North American rail network to flourish.
- Strengthen the framework to address vulnerabilities in the current landscape.
- Ensure that North America’s integrated rail sector continues to serve U.S. economic and national security interests.
Just as the current trilateral framework expands rail security standards across the continent, the Rail Security Alliance sees opportunities to make the framework even stronger.
Focus Areas for the USMCA Joint Review
- Maintain the Trilateral USMCA Framework: Preserve the existing three-nation agreement and avoid breaking it into separate bilateral deals.
- Protect the Current Railcar Exemption: Keep freight railcars and rolling stock exempt from tariffs which would negate long-established USMCA cross-border efficiency and preserve manufacturing competitiveness.
- Extend U.S. Rail Security Standards Across North America: Encourage Canada and Mexico to align with U.S. laws like TIVSA and the SAFE TRAINS Act to block Chinese state-owned enterprises from North American rail projects.
- Strengthen Industrial Security Coordination: Use the Joint Review to enhance cooperation on trade enforcement and non-market economy challenges, ensuring a united stance against Chinese state subsidies.