The 2026 review of the United States–Mexico–Canada Agreement (USMCA) presents a critical opportunity to strengthen North America’s digital competitiveness, modernize Chapter 19 (Digital Trade), and reinforce regional cooperation on cybersecurity, artificial intelligence (AI), data governance, and small- and medium-sized enterprise (SME) inclusion.

North America is undergoing rapid technological transformation driven by AI, cloud services, automation, cybersecurity needs, and digital trade. While the digital economy has become a major engine of growth—exceeding $1.5 trillion in cross-border digital trade—SMEs continue to face structural barriers such as limited access to capital, digital skills gaps, and regulatory fragmentation.

Chapter 19 positioned the USMCA as a global benchmark for digital trade, guaranteeing free data flows, prohibiting data localization, and supporting non‑discriminatory treatment of digital products. However, evolving technological challenges require updated commitments that safeguard competitiveness, resilience, and trusted innovation.

Strengthening regional cybersecurity cooperation

Cybersecurity is now central to economic and national security. Threats to critical infrastructure, regional supply chains, and cross‑border data systems have grown significantly. As part of the review, the parties should modernize Article 19.15 by:

  • Harmonizing cybersecurity regulations across the three countries, aligned with NIST, ISO/IEC 27000, OECD principles, and global best practices.
  • Establishing a trilateral incident‑reporting framework with common thresholds, timelines, and response protocols.
  • Developing trusted, real‑time information‑sharing mechanisms between governments and the private sector.
  • Protecting critical infrastructure, including cloud services, telecommunications, customs systems, and industrial control systems, through joint simulation exercises and coordinated defenses.
  • Strengthening supply chain security through regional certification programs for secure hardware and software.
  • Building a North American cybersecurity talent initiative to close skills gaps, especially for SMEs.

These measures would enhance digital trust, reduce fragmentation, and protect the region’s shared economic infrastructure.

Ensuring technology neutrality and regulatory adaptability

To remain competitive in a rapidly evolving digital environment, the USMCA should also reaffirm technology‑neutral, risk‑based, and innovation‑friendly regulation.

Policies should avoid prescriptive mandates that may become obsolete; align with international standards to reduce compliance costs; and encourage multi‑stakeholder participation—including industry, academia, and civil society—in regulatory design.

A flexible, principles‑based framework will allow businesses to adopt emerging technologies while ensuring fair competition and security.

Advancing AI governance and regional alignment

AI is transforming manufacturing, logistics, services, and trade. However, diverging national approaches risk creating barriers to cross‑border digital activity. The review should aim to establish a trilateral AI governance framework focused on risk classification, transparency, accountability, and ethical deployment; promote interoperable data governance rules to support responsible AI development; and facilitate SME access to AI tools, capacity‑building programs, and innovation sandboxes.

Coordinated governance will support innovation while maintaining public trust.

Promoting privacy interoperability and frictionless data flows

Data flows are essential for modern business models, but differing privacy frameworks increase uncertainty and disproportionately affect SMEs. The USMCA review should expand commitments to privacy interoperability, including certifications, model clauses, and mutual recognition agreements; encourage broader participation in the Global Cross‑Border Privacy Rules (CBPR) Forum; and reinforce prohibitions on unjustified data localization.

Predictable and secure data flows will reduce compliance burdens and enhance regional competitiveness.

Supporting SME digital transformation and cross‑border trade

SMEs represent more than 98% of enterprises in North America, yet many lack digital readiness.1 To close this gap, it will be essential to: 1) launch trilateral digital capacity‑building programs including microcredentials, AI literacy, and cybersecurity training; 2) develop harmonized e‑commerce and digital trade onboarding tools to simplify compliance; 3) enhance digital financial inclusion through aligned credit‑assessment standards, open finance frameworks, and a trilateral fintech sandbox; and 4) promote corporate–SME linkages through regional procurement pipelines and supplier diversity initiatives.

These efforts would strengthen competitiveness and enable SMEs to participate in regional value chains.

Establishing a permanent trilateral digital economy forum

To ensure continuous adaptation and coordinated governance, the Mexican Association of the Information Technology Industry (AMITI) proposes creating a Permanent Digital Economy Forum under the USMCA Free Trade Commission, consistent with Article 19.14. This mechanism would:

  • Monitor the implementation and effectiveness of Chapter 19.
  • Assess emerging risks and opportunities in areas such as AI, quantum computing, cybersecurity, and digital skills.
  • Promote regulatory interoperability and avoid divergent national approaches.
  • Facilitate annual multistakeholder dialogue among governments, industry, academia, and civil society.
  • Develop shared guidelines and pilot initiatives, including mutual recognition of standards.
  • Encourage procurement practices that promote open standards, interoperability, and digital sovereignty.

Such a forum would provide long‑term continuity and ensure that North America remains a global leader in digital trade governance.

The 2026 USMCA review is a pivotal moment to reinforce North America’s digital leadership. By modernizing Chapter 19, strengthening cybersecurity cooperation, advancing interoperable AI and privacy frameworks, and empowering SMEs, the region can build a secure, innovative, and inclusive digital economy. AMITI reiterates its commitment to collaborating with policymakers in Mexico, the United States, and Canada to ensure that the USMCA continues to drive long‑term competitiveness and shared prosperity across North America.

Source link