Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Trump mulls scrapping USMCA as industry groups push for renewal; DP World opens Querétaro warehouse to support Mexico’s nearshoring boom; and East Coast Warehouse & Distribution launches first Texas operation.
While major industry groups are urging federal authorities to extend the U.S.–Mexico–Canada Agreement (USMCA) for another full 16-year term, the Trump administration said it is considering scrapping the trade pact and negotiating a new one.
U.S. Trade Representative Jamieson Greer told Politico “the president’s view is he only wants deals that are a good deal. The reason why we built a review period into USMCA was in case we needed to revise it, review it or exit it.”
Greer, who discussed the USMCA with Politico’s White House bureau chief Dasha Burns in a podcast episode that aired Friday, said Trump has also raised the idea of negotiating separately with Canada and Mexico and dividing the agreement into two parts.
The U.S., Mexico and Canada are preparing for the first six-year joint review of the USMCA in 2026. The USMCA was negotiated during Trump’s first term as president and replaced the North American Free Trade Agreement in 2020.
Despite the possibility of the U.S. withdrawing from the trade pact, several trade and business organizations said USMCA has become a cornerstone of North American economic integration.
At a series of public hearings at a USMCA panel in Congress, the American Apparel & Footwear Association (AAFA), the National Grain and Feed Association (NGFA) and the National Taxpayers Union (NTU) voiced strong support for maintaining USMCA’s duty-free market access and existing rules of origin.
AAFA said the agreement has become a vital foundation for the textile, apparel and footwear supply chain linking all three countries.
“From cotton to consumer there is a tightly woven supply chain that binds together a network of workers, farmers, and employers throughout Mexico, the U.S. and Canada,” AAFA Vice President Beth Hughes said in a news release. “The USMCA enables this supply chain, setting clear and predictable ground rules and articulating a long-term incentive structure that powers jobs, investments, and regional trade.”
NGFA also pressed for a full renewal without altering the agreement’s core terms, citing the essential role Mexico and Canada play as U.S. export markets for corn, soybeans and wheat.
“Mexico and Canada are two of the most important export markets for U.S. corn, soybeans, wheat, and other commodities,” Seyfert said in his testimony. “Mexico, in particular, purchased more than $12 billion in U.S. grain and oilseed products last year and is expected to surpass China as our largest export customer.”
The NTU encouraged the Trump administration to preserve USMCA’s zero-tariff structure while exploring modernization measures such as updated digital trade provisions, improved national-security exceptions and streamlined compliance requirements for small businesses.
Meanwhile, California avocado growers raised sharply different concerns, warning that USMCA’s current structure leaves domestic producers increasingly exposed to pest threats and market pressures.
California Avocado Commission President Ken Melban told the panel that changes made in 2024 to Mexico’s avocado inspection system — removing U.S. APHIS inspectors from orchard and packinghouse oversight — have led to more than 150 pest interceptions in just four months, a level he called “a serious infestation risk waiting to happen.”
Melban urged the U.S. to reinstate the 1997 APHIS-led inspection requirements and formalize them under USMCA. Melban also pointed to surging low-priced imports as a major threat: Mexican avocado exports to the U.S. climbed 312% over 14 years, while California grower ranks fell 55% and average prices dropped to $1.08 per pound.
“While imports thrive, the trendlines for our industry all point to decline,” Melban said.
Ports and logistics operator DP World has opened a 117,000-square-foot multi-customer warehouse in Querétaro, Mexico, to strengthen its third-party logistics (3PL) capabilities as manufacturers continue shifting production to the country, according to a news release.
The Querétaro facility, located in La Bomba Industrial Park in El Marqués, expands the company’s national logistics footprint and supports growing nearshoring-driven demand.
The site — DP World’s first multi-customer operation in the Bajío region — offers direct access to Highway 57 and proximity to Querétaro Intercontinental Airport, making it a key hub for automotive, industrial, and technology supply chains.The warehouse includes 6,168 pallet positions, a mix of racked and floor storage, and expected throughput of 17–20 forty-foot equivalent units per week.
DP World now employs nearly 800 logistics professionals in Mexico and continues to scale services across North America.
Headquartered in Dubai, United Arab Emirates, DP World is one of the world’s largest container terminal operators, with 108,100 employees in 74 countries on six continents. The company also provides logistics solutions, maritime services and free trade zones.
East Coast Warehouse & Distribution is expanding into Texas with a new $57.5 million temperature-controlled logistics facility in Baytown, according to a news release.
The new facility will be located about 9-miles from Port Houston’s Barbours Cut and Bayport container terminals. The project will create 65 jobs and marks the company’s first operation in the state.
The 321,440-square-foot facility, located at 9200 FM 1405, will provide public warehousing and serve as a base for Safeway Trucking. An additional 8.5 acres will support parking and storage for 275 trailers and containers. CEO Jamie Overley said the Houston expansion strengthens the company’s national footprint and supports customers with end-to-end temperature-controlled logistics solutions.
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