US Chamber Warns of SAT Pressure, Flags Risks in Mexico’s Reforms

The US Chamber of Commerce, the largest private-sector business organization in the United States, has formally complained to Trump Administration officials, accusing Mexico’s Tax Administration Service (SAT) of increasing coercive practices and abuses against its member companies operating in Mexico.

In a document submitted to the Office of the US Trade Representative (USTR) in October, the Chamber accused the SAT of applying “practices that lack transparency and due process,” creating “uncertainty and the risk of unfair fines” for American companies. The organization claims the SAT is using these tactics “to extract additional revenue.”

Fiscal, Judicial, and Regulatory Concerns

The document forms part of the Chamber’s official comments ahead of the joint USMCA review scheduled for 2026. The organization argues that US companies are increasingly subject to SAT measures that it says conflict with Mexican law and international best practices.

One specific concern is the SAT’s retroactive reinterpretation of the Value Added Tax (IVA) law, which now prevents insurance companies from claiming tax credits for IVA amounts included in claims paid to third-party providers, despite prior confirmation that the practice was valid.

The Chamber also raised alarm over Mexico’s 2025 judicial reforms enabling the direct election of judges, warning that they could undermine Mexico’s USMCA commitments to maintain a competent, independent, and impartial judiciary, thereby weakening investment protections.

Additionally, the Chamber criticized the dissolution of autonomous regulatory bodies such as the National Hydrocarbons Commission (CNH), the Energy Regulatory Commission (CRE), and the Federal Economic Competition Commission (COFECE), saying their elimination has “weakened transparency and regulatory oversight.”

Energy Sector and Trade Concern

US business leaders argued that Mexico’s current administration has continued the constitutional counter-reforms in the energy sector initiated by the previous government, prioritizing state-owned companies Pemex and CFE at the expense of private operators. The Chamber maintains that these policies constitute “clear violations of USMCA commitments.”

Among its specific concerns, the Chamber stated that CFE “now has dispatch precedence over private-sector companies in the electric sector” and that “only the State is permitted to supply transmission and distribution services.”

The organization also criticized recent US tariffs on products from Mexico and Canada, warning that they are “not compatible with the USMCA.” It argued that the agreement’s core objective is to maintain free trade within North America and that the tariffs increase costs for US manufacturers, particularly in the automotive sector, and ultimately harm consumers.

The Chamber emphasized the importance of Mexico and Canada as key markets for US small and medium-sized enterprises (SMEs), noting that “more than 100,000” of them export goods and services to both countries.

Finally, it urged that the trilateral structure of the USMCA be preserved and recommended that “any change must be limited and must not reopen the agreed text to avoid uncertainty.”