U.S. and Mexico Begin Bilateral Talks to Rework North American Trade Rules

Overview

• The Office of the U.S. Trade Representative has opened the first of three bilateral negotiation rounds with Mexico to modify the USMCA framework while excluding Canada.
• The talks are scheduled to continue with a second round in Washington on June 16–17 and a third round in Mexico City the week of July 20, according to USTR announcements.
• U.S. negotiators are pressing for stronger rules of origin, including a proposed minimum U.S.-specific content requirement for cars and trucks made in Mexico, though no numeric threshold has been publicly disclosed.
• U.S. officials say some tariffs on Mexican and Canadian goods will remain but countries that agree to tougher origin rules could get preferential treatment, a stance linked to concerns about imports from countries such as China.
• Any change to rules of origin could shift where parts and final assembly take place, affecting automakers, steelmakers and thousands of workers across North America and reshaping supply chains that support about $1.6 trillion in annual trilateral trade.