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U.S. and Mexico Set Bilateral Round to Rework USMCA Rules of Origin

A U.S. push to raise domestic content seeks to tighten economic security rules ahead of a July 1 checkpoint that could automatically extend the pact.

Overview

  • U.S. Trade Representative Jamieson Greer announced the first formal review will focus on strengthening regional rules of origin and economic security, with talks scheduled next week in Mexico City as a U.S.–Mexico bilateral.
  • The U.S. delegation is expected to include a large team of federal officials plus business representatives who will press to increase the share of U.S. inputs required to qualify for preferential treatment under the trade rules.
  • Canada is excluded from the initial session on procedural grounds but Canadian officials and Mexican negotiators say Ottawa is likely to rejoin the formal talks in the coming weeks.
  • Negotiators are operating under Article 34.7 of the USMCA, which sets a July 1, 2026 checkpoint that would automatically extend the treaty for 16 years if consensus is reached, or trigger annual reviews and uncertainty if it is not.
  • Mexican officials warn a quick deal is unlikely and expect prolonged, periodic reviews; automakers and other firms say tougher rules or treaty erosion could prompt investment shifts and affect jobs across the region.