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Posted: 5/15/25

TAMIU's A.R. Sanchez, Jr. School of Business TCBEED Releases Proposal for North American Industrial Coordination Council

 

Dr. Daniel Covarrubias
Dr. Daniel Covarrubias  

The Texas A&M International University (TAMIU) A. R. Sanchez, Jr. School of Business Texas Center for Border Economic and Enterprise Development (TCBEED) has released a comprehensive proposal for establishing a North American Industrial Coordination Council (NAICC), a trilateral institution designed to align industrial strategies across the United States, México, and Canada.

"Toward a North American Industrial Strategy: The Case for a North American Industrial Coordination Council," authored by Texas Center director Dr. Daniel Covarrubias and Gerardo (Gerry) Schwebel, executive vice president of IBC Bank and chair of the Texas Center Advisory Council, presents a framework for translating economic integration into coordinated industrial development across North America.

Dr. Covarrubias emphasized the timeliness of this proposal as the continent faces evolving economic challenges.

"As global supply chains restructure and strategic sectors become increasingly critical for technological advancement, North America has a unique opportunity to strengthen regional integration through more effective industrial coordination," explained Dr. Covarrubias, "The NAICC would serve as a platform for aligning national policies, strengthening regional supply chains, and ensuring that innovation, investment, and workforce development efforts mutually reinforce across the continent."

The proposal details how the NAICC would leverage each country's distinct and complementary strengths, U.S. innovation leadership, Canadian resource capabilities, and México's manufacturing expertise to enhance continental competitiveness against major economic blocs like China and the European Union.

Schwebel underscored the strategic imperative for institutional innovation.

"This moment calls for the deliberate creation of new governance structures and coordination mechanisms to address complex, cross-cutting challenges," Schwebel noted, "USMCA modernized our regional trade framework but did not establish a comprehensive mechanism for strategic industrial coordination. The NAICC would fill this gap by providing a permanent institution capable of orchestrating long-term industrial strategies across borders."

Dr. Luis Perez-Batres, Dean of the Sanchez School of Business, commented on the proposal’s significance.

“This NAICC framework exemplifies the forward-thinking, solution-oriented approach that defines the work of the Sanchez School’s Centers. By identifying the institutional mechanisms needed to coordinate industrial development across North America, this research moves beyond traditional trade analysis to address the governance challenges of regional integration. These insights are valuable to public and private decision-makers navigating the complex landscape of cross-border trade. Through contributions like this, the Texas Center continues to establish itself as a thought leader in economic and enterprise development in South Texas and beyond.”

Tiffany Melvin, president of the North American Strategy for Competitiveness (NASCO), endorsed the proposal's alignment with broader continental cooperation efforts.

"NASCO is proud to support this comprehensive plan for a North American Industrial Strategy," Melvin said, "The proposed NAICC framework addresses critical coordination gaps we've identified through our work across the continent. Particularly promising is the North American Standards Skills Council concept, which would build on existing NASCO initiatives to create standardized credentials to improve the productivity and competitiveness of workers, companies, the three North American nations, and our continent as a whole.  This proposal offers a practical roadmap for the next phase of North American dominance in the global marketplace.”

The proposed NAICC would feature five specialized divisions focused on strategic sectors, supply chain resilience, technology and innovation, workforce development, and regulatory harmonization. The paper recommends implementing the Council through the 2026 USMCA review process.

This proposal follows the Texas Center's recent series on North American trade-linked employment, documenting how deeply integrated the continental economy has become, with over 8.4 million jobs across the U.S. and México significantly connected to cross-border commerce.

It also builds upon Dr. Covarrubias's earlier work proposing a Binational Customs Agency to address border efficiency and security concerns. Together with an upcoming third proposal focused on digital infrastructure, these recommendations form part of a comprehensive framework for reimagining North American economic architecture as the region approaches the critical 2026 USMCA review.​​​​​​​​​​​​​​​​

To access this report and other recent publications from the Texas Center on North America integration, please visit http://texascenter.tamiu.edu/research-nai.shtml

For more about the Texas Center and its research initiatives, please contact Dr. Covarrubias at dcova@tamiu.edu or call 956.326.2520.

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