The Trump administration plans to urge Mexico for stricter rules of origin, enhanced labor and environmental standards, tighter intellectual property protections, and increased American manufacturing content in the renegotiation of the United States-Mexico-Canada Agreement (USMCA). Following the first mandatory six-year joint review of the USMCA, the United States opted not to renew the agreement in its current form but will keep it in effect as negotiations progress. Bilateral talks between the US and Mexico are set for the week of July 20, focusing on strengthening rules of origin, bolstering North American economic security, and addressing labor, environmental, and intellectual property commitments.
The administration aims to ensure more manufacturing occurs within North America, particularly in the US, by implementing stricter rules. While acknowledging the positive impact of automotive rules negotiated under the USMCA, officials believe similar robust rules should extend to other industries beyond automobiles. Additionally, the administration seeks to impose stronger US content requirements to prevent companies from moving production to Mexico solely to access the American market duty-free.
Washington is also pressing Mexico to enhance compliance with labor obligations and address environmental issues along the shared border. The administration recognizes Mexico’s progress in intellectual property enforcement but emphasizes the need for further improvements. Economic security is increasingly vital in North American trade policy, with Mexico’s tariff increases on non-regional countries seen as beneficial for the broader North American economy.
