Mexican Companies Support USMCA Extension in New Report
Mexican firms view the USMCA as vital for regional supply chains and investment. A new report urges strengthening the pact during the upcoming trade review.
A new report summarizing public consultations in Mexico reveals that domestic businesses are strongly in favor of maintaining the trilateral trade agreement with the United States and Canada. The document, released on Monday by the Mexican Economy Ministry, highlights the USMCA treaty as a cornerstone for investment certainty and the protection of regional supply chains.
The 88-page report arrives just one week before bilateral discussions are scheduled to begin between American and Mexican officials to initiate a comprehensive three-way review of the pact. The USMCA, which succeeded the North American Free Trade Agreement in 2020, is vital to the Mexican economy, as approximately 80% of the nation's exports are destined for the American market.
Under the terms established during the first term of President Donald Trump, the three nations must conduct a joint review this year to decide on an extension. A successful agreement would secure the treaty for another 16 years. Conversely, failure to reach a consensus would trigger a cycle of annual reviews, a scenario many industry experts describe as a terminal threat to the agreement's stability.
While the report indicates that Mexican businesses prefer strengthening the existing framework over a full-scale renegotiation, political hurdles remain. President Trump has previously expressed skepticism regarding the treaty's necessity and has issued threats to withdraw from the arrangement entirely.
