Mexico has initiated its first yearly assessment of the US-Mexico-Canada Agreement (USMCA), aiming to alleviate rising trade tensions with the United States amid potential new tariff threats. As part of this process, Mexican President Claudia Sheinbaum is set to engage with U.S. Trade Representative Jamieson Greer in Mexico City. This high-level meeting follows a series of technical discussions between officials from both nations.
The discussions are taking place against the backdrop of U.S. President Donald Trump’s contemplation of additional tariffs on imports from over 60 countries, including Mexico. This move underscores the urgency for Mexico to address trade concerns with its northern neighbor and to seek solutions to avert further economic strain.
U.S. Trade Representative Greer has indicated to American lawmakers that provisional agreements concerning the USMCA could potentially be finalized by the end of 2026. However, he acknowledged that negotiations surrounding more intricate issues, such as rules of origin, labor standards, and environmental commitments, are likely to extend into 2027.
The United States is advocating for tighter rules of origin as part of the trade agreement. This push aims to ensure that products benefiting from the agreement are authentically manufactured within North America, thereby preventing them from being rerouted through Mexico from other countries. Such measures are seen as essential to maintaining the integrity and competitiveness of North American manufacturing.