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Mexico Says USMCA Review Is On Schedule as It Seeks Auto Tariff Cut, Stronger Dispute Rules

Mexico outlines priorities to seek auto tariff parity with stronger dispute enforcement.

Overview

  • The Economy Secretary said consultation reports from Mexico, the United States and Canada are due by the end of January, with formal negotiations set to wrap up in June and a July 1 deadline to conclude the review.
  • Mexico formally asked the United States to lower the 27.5% tariff on vehicles that fail North American content thresholds to 15% to align pricing with competitors from regions like Japan and the European Union.
  • Preserving the trade pact remains Mexico’s core objective, alongside ensuring greater equity in the Rapid Response Labor Mechanism and adherence to side letters such as those covering steel.
  • Marcelo Ebrard will deliver Mexico’s internal conclusions to President Claudia Sheinbaum in the coming days and will also send the document to the Senate for follow-up.
  • Ebrard noted that about 85% of Mexico’s exports to the United States now use USMCA rules, up from roughly 50% earlier, reflecting deeper reliance on the agreement.