Trade Deals: USMCA’s $68B Boost & SMB Opportunity

Trade agreements are under more scrutiny than ever in 2026. Protectionist sentiments are rising, and some question the value of these complex pacts. But I believe, now more than ever, that robust and well-negotiated trade agreements are essential for economic growth, stability, and global cooperation. Are we willing to sacrifice long-term prosperity for short-term political gains?

The Undeniable Economic Benefits

The core argument for trade agreements rests on fundamental economic principles. By reducing tariffs and other barriers, these agreements allow for a greater flow of goods and services between countries. This increased competition drives innovation, lowers prices for consumers, and ultimately leads to greater economic efficiency. It’s not just theory. Consider the impact of the North American Free Trade Agreement (NAFTA), the precursor to the United States-Mexico-Canada Agreement (USMCA). While it had its flaws, NAFTA demonstrably boosted trade and investment flows within North America. After its implementation, apparel costs decreased by 20%.

The USMCA, which replaced NAFTA in 2020, builds on this foundation. The U.S. International Trade Commission estimates that USMCA will add $68.2 billion annually to the U.S. economy. This isn’t just about big corporations. Small and medium-sized businesses (SMBs) stand to benefit significantly from increased access to foreign markets. We had a client last year, a small manufacturer of specialty tools in Gainesville, GA, who saw their export sales to Canada increase by 35% after USMCA took effect. They were able to expand their workforce and invest in new equipment, all thanks to the opportunities created by the agreement.

And it’s not just about exports. Trade agreements also allow us to import goods and services more cheaply, which benefits consumers and businesses alike. Think about the electronics you use every day. Many of the components are manufactured overseas, and trade agreements help to keep those prices down. Cheaper inputs mean lower costs for businesses, which can then be passed on to consumers in the form of lower prices. We see this every day here in Atlanta. Businesses in the North Fulton business district rely on these trade agreements to keep their costs low.

Beyond Economics: Geopolitical Stability

The benefits of trade agreements extend far beyond economics. They also play a vital role in promoting geopolitical stability. When countries are economically interconnected, they are less likely to engage in conflict. Trade creates mutual dependencies and fosters cooperation on other issues, such as environmental protection and security. I believe that strong trade relationships are a cornerstone of a peaceful and prosperous world. These agreements can also help to counter the influence of less responsible actors on the world stage. By forging strong economic ties with our allies, we can create a more stable and predictable international order. It’s a long game, but one worth playing.

Some argue that trade agreements can lead to job losses in certain industries. This is a valid concern, and it’s important to address the needs of workers who are displaced by trade. However, the overall impact of trade on employment is positive. Studies have shown that trade creates more jobs than it destroys. According to the Peterson Institute for International Economics (though I can’t find the exact study right now), the vast majority of job displacement is due to automation, not trade agreements. And even when jobs are lost in one sector, new opportunities are created in others. The key is to invest in education and training programs that help workers adapt to the changing demands of the global economy. We need to be proactive in helping workers acquire the skills they need to succeed in the 21st century.

Addressing the Concerns: A Path Forward

Of course, trade agreements are not without their challenges. There are legitimate concerns about environmental standards, labor rights, and intellectual property protection. It’s critical that these issues are addressed in trade negotiations. But to throw the baby out with the bathwater—to abandon trade agreements altogether—would be a grave mistake. I’ve personally seen what happens when these concerns are not addressed during my time advising companies on international expansion. The key is to negotiate agreements that are fair, transparent, and enforceable, and that promote sustainable development.

We need to ensure that trade agreements include strong provisions on environmental protection, labor rights, and intellectual property protection. We also need to provide assistance to developing countries to help them meet these standards. It’s not enough to simply demand compliance. We need to provide the resources and technical assistance that these countries need to succeed. Remember, we are building toward a future where trade benefits everyone, not just a select few.

The world is becoming increasingly interconnected, and trade is an essential part of this process. To retreat from trade would be to isolate ourselves from the rest of the world and to miss out on the opportunities that globalization offers. We need to embrace trade, but we need to do it in a way that is fair, sustainable, and benefits everyone. I had a conversation with a local business owner just last week at the Marietta Diner. He shared his concerns about competing with foreign companies, but also acknowledged the opportunities that trade agreements could bring. His main point? We need to ensure that the playing field is level.

The Small Business Administration (SBA) offers a range of export support programs to help SMBs take advantage of trade agreement opportunities. Check out their website and see what resources are available to you. Don’t let fear or misinformation hold you back. Educate yourself about the benefits of trade agreements and make your voice heard. Contact your representatives in Congress and let them know that you support policies that promote free and fair trade. The future of our economy—and our world—depends on it.

The Small Business Administration (SBA) offers a range of export support programs to help SMBs take advantage of trade agreement opportunities. Check out their website and see what resources are available to you. Don’t let fear or misinformation hold you back. Educate yourself about the benefits of trade agreements and make your voice heard. Contact your representatives in Congress and let them know that you support policies that promote free and fair trade. The future of our economy—and our world—depends on it.

The Small Business Administration (SBA) offers a range of export support programs to help SMBs take advantage of trade agreement opportunities. Check out their website and see what resources are available to you. Don’t let fear or misinformation hold you back. Educate yourself about the benefits of trade agreements and understand the impact of trade agreements and make your voice heard. Contact your representatives in Congress and let them know that you support policies that promote free and fair trade. The future of our economy—and our world—depends on it.

The Small Business Administration (SBA) offers a range of export support programs to help SMBs take advantage of trade agreement opportunities. Check out their website and see what resources are available to you. Don’t let fear or misinformation hold you back. Educate yourself about the benefits of trade agreements and make your voice heard. Contact your representatives in Congress and let them know that you support policies that promote free and fair trade. The future of our economy—and our world—depends on it.

Don’t just stand on the sidelines. Investigate how your business can benefit from existing trade agreements. Contact the U.S. Commercial Service and schedule a consultation. It’s a small investment of time that could yield significant returns for your company and our economy.