US and Mexico begin formal trade agreement reviews

As of March 2026, the United States and Mexico have begun formal discussions ahead of the critical USMCA six-year joint review, which officially kicks off on July 1, 2026.

This review process, triggered by a 'sunset clause' in Article 34.7, is essential to decide whether to extend the agreement for another 16 years.

A primary point of tension is the so-called 'China backdoor,' where the U.S. fears that Mexico acts as a transit point for Asian goods to bypass tariffs.

To combat this, the U.S. is pushing for stricter rules of origin and enhanced supply chain security to favor North American production.

Mexico, meanwhile, hopes to secure the removal of existing tariffs on steel and aluminum.

The talks also cover Mexico's labor laws and energy policies, which the U.S. believes unfairly favor state-owned firms.