Mexico and Canada are closing in on an agreement to bypass the US on trade by building a new land and sea corridor. The plan, reported by PPR Mundial, aims to slash transhipment tariffs and taxes on goods moving between the two countries. By routing containers and data through a “North Belt,” both governments expect to cut costs, speed deliveries, and deepen economic ties without relying on US territory.
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The proposal could cost the US up to $69 billion in direct tax revenue, another $17 billion in indirect benefits, and put $39 billion of US jobs at risk over five years. Analysts warn the Midwest economy could face a 2.8% drop in output if traffic diverts away from US rail and road networks.
Yet the corridor promises long‑term gains for North American trade providers. A seamless, border‑free route powered by clean energy would attract shippers from Asia, Europe, and beyond. Advocates say the efficiency gains would lock in the route’s value, even if future US administrations restore strict trade rules.
How the North Belt will bypass US on trade
Under the draft agreement, Mexico and Canada will develop new rail links, secure ports, and data hubs along a continuous path that avoids US customs checkpoints. Infrastructure spending will cover green‑energy systems for electrified cargo handling, digital tracking for shipments, and harmonized regulations on both sides of the border.
Officials aim to sign the deal in September, with construction kicking off immediately. They expect the North Belt to become fully operational by 2028, delivering faster transit times and lower costs for exporters and importers alike. Both governments are in talks with private investors to fund much of the estimated $120 billion project.
Critics in the US freight and trucking industries argue the corridor could undercut American logistics firms and cost Midwestern jobs. However, supporters counter that the plan will push the US to modernize its own trade routes and negotiate better terms for North American supply chains.
With global trade patterns shifting and new tariffs looming, Mexico and Canada’s North Belt may reshape commerce in the hemisphere. By drawing a fresh line around US territory, both nations hope to secure a resilient, low‑carbon corridor that stands the test of changing political winds.
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