How SMEs Strengthen the USMCA Supply Chain; and Why It Matters

SMEs USMCA Supply Chain

Small and Medium Enterprises (SMEs) are often called the backbone of the economy, and under the USMCA Agreement (formerly NAFTA), they are playing a rising yet underappreciated role in shaping North America's supply chain.

As former mayor of a border city in Arizona, Director of the Arizona Department of Commerce, and Chief of Staff at U.S. Customs and Border Protection, I’ve seen firsthand how cross-border supply chains work—and how critical SMEs are to trade success. Now, as CEO of Intermestic Partners—an international business advisory firm founded in 2011 that specializes in cross-border trade and development—I help companies navigate these supply chain opportunities from strategy to execution.

What Is the USMCA Supply Chain?

The USMCA (United States-Mexico-Canada Agreement) enables streamlined trade across North America. Its supply chain spans:

• Agriculture and manufacturing

• Pharmaceuticals and energy

• Automotive and electronics

It’s a network of products, people, and policies that crosses borders daily. And SMEs are involved at every step—from raw materials in Canada to parts made in Mexico to final assembly in the U.S.

In the automotive industry alone, a single vehicle under USMCA may cross borders 8+ times before reaching a consumer.

Why SMEs Matter More Than Ever

SMEs contribute:

• Job creation in local communities

• Innovation in niche products and services

• Agility in times of disruption

Their participation makes supply chains:

• More resilient

• More diverse

• More responsive to shifting consumer demand

Yet they are too often overlooked in the big business narratives of international trade.

The Benefits of SME Participation

For SMEs:

• Access to new markets

• Increased revenue potential

• Greater international exposure

For the USMCA supply chain:

• More competitive pricing

• Faster adaptability to change

• A decentralized structure that resists bottlenecks

The Challenges SMEs Face

Despite the opportunities, hurdles remain:

• High upfront costs and limited financing

• Regulatory complexity across three legal systems

• Logistics and language barriers

• Maintaining consistent quality standards

These issues often prevent smaller firms from entering or scaling within the USMCA network.

What Needs to Change

To help SMEs thrive in the USMCA supply chain, we must:

• Offer cross-border trade education and financing tools

• Simplify regulatory navigation for SMEs

• Foster public-private partnerships that provide shared infrastructure and risk mitigation

At Intermestic Partners, we work with SMEs and global firms to structure these kinds of cross-border strategies—empowering local businesses to scale internationally.

Looking Ahead: A Future Built by SMEs

Trends shaping tomorrow’s supply chains include:

• Digital transformation with AI, blockchain, and logistics tech

• Green supply chains focused on sustainability

• Growing demand for local, ethical, and custom-made products

SMEs are well-positioned to lead in all of these areas—if they are equipped to overcome today's obstacles.

Time to Recognize the Hidden Engine

SMEs aren't just support players in the USMCA supply chain. They are essential catalysts of trade, innovation, and resilience.

Partner with Intermestic Partners to create binational and trinational strategies that empower SMEs, bolster supply chains, and future-proof North America's economy.