Science, Technology, and Innovation in USMCA 2.0

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Executive Summary

The review of the USMCA presents a strategic opportunity to strengthen North America's competitiveness. Beyond trade, the process enables consideration of the integration of science, technology, innovation, and higher education (STIHE) into the region's competitiveness. Historically, NAFTA and the USMCA prioritized the trade agenda, leaving regional coordination in STIHE less developed. Even so, academic and scientific cooperation has grown, particularly through FOBESII (Bilateral Forum on Higher Education, Innovation, and Research) and MUSEIC (Mexico-US Entrepreneurship and Innovation Council) between Mexico and the United States. The former promoted more than 100,000 student mobility experiences and more than 100 inter-university agreements, while the latter supported binational entrepreneurship and innovation projects. In addition, the Mexico-United States Foundation for Science (USMFS) has promoted binational and trilateral projects in applied science, academic exchange, and technology-based entrepreneurship.

At the trilateral level, however, efforts have been intermittent, and follow-up has been limited. The review of the agreement among the three countries could nonetheless contribute to consolidating North America as a “knowledge zone.” This question is relevant in the context of evolving national policies that in some cases have reduced support for research and higher education. In trade, integration is deep: In 2024, intraregional trade exceeded $1.6 trillion. Mexico and Canada are the United States' main trading partners. For Mexico and Canada, the regional market accounts for more than three-quarters of their exports.

Yet this has not translated into integration in STIHE. This could be a missed opportunity, as China's growing economic and technological presence represents a significant competitive dynamic for the region and each USMCA member country. China ranks highly in global patent output and has expanded its role in advanced manufacturing, with implications for regional competitiveness. This paper proposes a vision of consolidating North America within 20 years into a leading global region in innovation and prosperity. The mission is to articulate investments and joint projects that accelerate high-value-added nearshoring (“innovation-shoring”). As part of the ongoing USMCA review process, it proposes adding to the Competitiveness Committee a Trilateral Forum on Higher Education, Innovation, and Research (FOTESII). This forum would coordinate policies, financing, and governance in strategic technological areas and high-impact trinational initiatives. Priority sectors would include semiconductors, AI, biotechnology, clean energy, and supercomputing. In addition to improving the region's efficiency, the inclusion of STIHE in USMCA 2.0 has the additional central objective of strengthening the technological and institutional capacity of the three countries. Integrating STIHE into the USMCA may represent a strategic priority for regional competitiveness and resilience.

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