Mexico Brings USMCA Review to Washington

Mexico and the United States will hold the second formal round of USMCA review negotiations in Washington on June 16 and 17, with rules of origin and agriculture as central topics.

The first round took place May 27-29 in Mexico City, with a third round scheduled for the week of July 20, also in the Mexican capital. According to Excélsior, Economy Secretary Marcelo Ebrard said Mexico arrives at the negotiating table in a strong position: "We're in the best relative position. That explains why our exports are rising." The review matters for Mexico because it determines the conditions for its exports to access the U.S. market, which receives the majority of Mexican foreign trade.

Tariff Advantage at Stake

Ebrard noted that Mexico currently pays a tariff rate of approximately 3.6% to enter the United States, lower than several competitors. According to El Financiero, Mexico's strategy aims to preserve this advantage against rivals like China, Vietnam, South Korea, and Japan. The secretary stressed that the old free-trade framework "no longer works" and highlighted that roughly 85% of exports complying with the treaty's rules of origin maintain preferential treatment.

The agenda for the second round adds agriculture and competitive conditions to previous topics including rules of origin, steel, aluminum, and the automotive sector. The U.S. Trade Representative's office (USTR) has prioritized reducing the trade deficit and strengthening supply chains. The Mexican government also approved around 500 new positions at the Mexican Industrial Property Institute to bolster intellectual property protection.

First Formal Review Since Implementation

The USMCA joint review, agreed upon by Mexico, the United States, and Canada, represents the first formal assessment of the treaty since it took effect. Results from the June and July rounds will preview the scope of adjustments the three partners will discuss in the 2026 trilateral review.

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