Mexico plans to speed up the assessment of the USMCA to establish clear border trade regulations while boosting declining foreign investment. Three Mexican officials who spoke to Reuters indicate that the review process could start before 2026 possibly in September.
The Mexican government has made an abrupt change in its position regarding early review procedures. The decrease in foreign direct investment by 21% during the first quarter of 2025 compared to 2024 has prompted policymakers to take action because investors became concerned about President Donald Trump’s protectionist policies and unstable trade environment.
Economy Minister Marcelo Ebrard supported the initiative for an early review because he believed stability was essential due to Trump’s trade-related statements that created uncertainty in Mexico’s export-oriented economy. The change in position stems from Trump’s demonstrated ability to use trade agreement provisions as a tool in his trade policy approach.
Former trade negotiator Juan Carlos Baker explained that Mexico needs to handle Trump’s aggressive approach with caution because he could withdraw Mexico from its biggest export market. Baker expressed concern that Trump might completely exit the agreement if he believes Mexico is not cooperating.
The unclear nature of trade regulations has intensified doubts about Mexico’s judicial reforms which negatively affect investor confidence.
Mexico’s decision to conduct an early USMCA review demonstrates the critical economic situation of its economy while showing its need to navigate the intricate relationship with its northern neighbor.
