Premier Offers Recommendations on USMCA Renegotiations

Premier responded to the US Trade Representative (USTR)'s solicitation for input on the Operation of the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA). In its comments, Premier underscored that trade agreements and the targeted use of tariffs can provide value, but drastic changes to trade and tariff policy coupled with aggressive implementation timelines can result in unintended consequences to the US healthcare supply chain. Therefore, Premier recommended to the USTR that any unified trade policy ensure that overarching goals are met while minimizing negative impacts to the healthcare supply chain and the downstream impact to patient care. Specifically, Premier urged the USTR to:

• Advocate for the development and implementation of comprehensive trade and tariff policies that prioritize transparency, establish clearly defined timelines, and ensure predictability in regulatory and operational outcomes;
• Promote resilient and adaptable relationships with international trading partners like Mexico and Canada;
• Recommend the promotion of near-shoring and friend-shoring strategies for manufacturing, with particular emphasis on safeguarding the production of critical pharmaceuticals and medical devices;
• Recognize and address the constraints posed by skilled labor shortages within the U.S. and emphasize the necessity of collaborative engagement with Canada and Mexico to effectively meet shared workforce and supply chain challenges; and
• Update the agreement to include provisions for digital supply chain management, strengthen cybersecurity collaboration among parties, and implement robust digital product traceability measures.