Mexico remains confident that the US-Mexico-Canada Agreement (USMCA) will be extended, even as US president Donald Trump questions the value of the pact that functions as a foundation for much of North America's trade.
The three countries are working on the treaty's scheduled review this year and aim to meet the 1 July deadline to conclude the process, Mexico's economy minister Marcelo Ebrard said Thursday during president Claudia Sheinbaum's daily press conference. Negotiators have made steady progress on issues raised by each side, he said
Ebrard's remarks come after Trump again put the USMCA's future in question earlier this week. During a visit to a Ford plant in Michigan, Trump dismissed the treaty as offering "no real advantage". The agreement, which replaced the North American Free Trade Agreement (NAFTA) in 2020, is a key driver of Mexico's economy, supporting trade and manufacturing supply chains tied to the US and Canada.
This year's review cycle foresees a 16-year extension to the treaty if all three countries agree. Without an extension, the USMCA would shift to annual reviews, which analysts see leading to further uncertainty about trade and investment planning.
Tariffs on some Mexican exports would probably remain in place even if the agreement is renewed, analysts have said.
Bilateral relations have grown tense in the past year following Trump's repeated threats to pursue military action against criminal groups in Mexico. The US has also pressed Mexico to deliver faster progress on illegal drug traffic enforcement.
Mexico's foreign minister Juan Ramon de la Fuente and US secretary of state Marco Rubio spoke by telephone on Thursday and reaffirmed the "importance of the US-Mexico partnership", both governments said in a joint statement. Following the call, the US State Department posted on X that "incremental progress" on border security is "unacceptable", and that upcoming engagements will require measurable results to dismantle trafficking networks and disrupt alleged fentanyl flows from Mexico into the US.
Sheinbaum said earlier this week that she had ruled out any US military intervention following a "good conversation" with Trump on security issues.
