Borderlands Mexico is a weekly summary of developments in the world of US-Mexico cross-border shipping and trade. This week: Trump is considering repealing the USMCA as industry groups push for an extension. DP World opens Querétaro warehouse to support boom near Mexico’s coast. and East Coast Warehouse & Distribution set up its first Texas operation.
Trump is considering repealing the USMCA as industry groups push for an extension
As major industry groups urge federal officials to extend the US-Mexico-Canada Agreement (USMCA) for another full 16-year term, the Trump administration has said it is considering scrapping the trade pact and negotiating a new deal.
U.S. Trade Representative Jamieson Greer told Politico: “The president’s view is that he only wants deals that are good deals. The reason we created a review period in the USMCA was in case we needed to renegotiate, renegotiate, or withdraw from it.”
Speaking about the USMCA with Politico’s White House chief Dasha Burns in a podcast episode that aired Friday, Greer said Trump has also floated the idea of negotiating separately with Canada and Mexico, splitting the deal into two parts.
The United States, Mexico and Canada are preparing for the USMCA’s first joint six-year review in 2026. The USMCA was negotiated during Trump’s first term and replaced the 2020 North American Free Trade Agreement.
Despite the possibility of the US withdrawing from the trade pact, several business and trade organizations said the USMCA has become a cornerstone of North American economic integration.
In a series of public hearings on the USMCA panel in Congress, the American Apparel and Footwear Association (AAFA), the National Feed and Grain Association (NGFA) and the National Taxpayers Union (NTU) expressed their strong support for maintaining the 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 that connects all three countries.
“From cotton to consumer there is a woven supply chain that connects a network of workers, farmers and employers across Mexico, the United States and Canada,” AAFA Vice President Beth Hughes said in a statement. The USMCA enables this supply chain, sets clear and predictable ground rules, and articulates a long-term incentive structure that empowers jobs, investments, and regional trade.
The NGFA also pressed for a full extension without changing the basic terms of the agreement, citing the essential role of Mexico and Canada as US export markets for corn, soybeans and wheat.
“Mexico and Canada are two important export markets for US corn, soybeans, wheat and other commodities,” Seifert said in his testimony. Mexico in particular bought more than $12 billion in U.S. grain and oilseed products last year and is expected to overtake China as our largest export customer.
NTU encouraged the Trump administration to maintain the USMCA’s zero-tariff structure while exploring modernization measures such as updated digital commerce regulations, improved national security exemptions, and simplified compliance requirements for small businesses.
Meanwhile, California avocado growers raised different concerns, warning that the USMCA’s current structure leaves domestic producers increasingly vulnerable to pest threats and market pressures.
Ken Melban, chairman of the California Avocado Commission, told the panel that changes made in 2024 to Mexico’s avocado inspection system — removing U.S. APHIS inspectors from overseeing orchards and packaging — have led to the detection of more than 150 pests in just four months, a level he called “a serious contamination risk pending.”
Melban urged the United States to reinstate the 1997 APHIS-led inspection requirements and formalize them under the USMCA. Melban also pointed to the rise of low-priced imports as a major threat: Mexican avocado exports to the U.S. rose 312 percent over 14 years, while the ranking of California producers fell 55 percent and average prices fell to $1.08 per pound.
“While imports are booming, the trends in our industry are all pointing to a decline,” Melban said.
DP World opens Querétaro warehouse to support boom near Mexico’s coast
Port and logistics operator DP World has opened a 117,000-square-foot multi-customer warehouse in Querétaro, Mexico to bolster its third-party logistics (3PL) capabilities as manufacturers continue to move production into the country, according to a news release.
The Querétaro facility, located in the La Bomba industrial park in El Marqués, expands the company’s national logistics footprint and supports growing demand near the coast.
The site – DP World’s first multi-client operation in the Baguio 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 graded units and 20 graded storage units, and is 2,000 square meters and 17,000 square meters. per week
DP World now employs nearly 800 logistics professionals in Mexico and continues to expand services throughout 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 offers logistics solutions, maritime services and free trade zones.
East Coast Warehousing and Distribution launched its first Texas operation
An East Coast warehouse and distribution company 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 approximately 9 miles from Port Houston’s Barbour’s Cut and Bayport container terminals. The project will create 65 jobs and is the company’s first operation in the state.
The 321,440-square-foot facility located at 9200 FM 1405 provides general storage and serves as a base for Safeway shipping. An additional 8.5 acres supports parking and storage for 275 trailers and containers. CEO Jamie Everly 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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