USMCA Review / Electoral Reform

Mexico Seeks to Maintain and Strengthen USMCA. Foreign Affairs Minister Marcelo Ebrard stated that Mexico will present a clear stance in the upcoming USMCA review, aiming to preserve the agreement, reinforce dispute resolution mechanisms, and ensure reciprocity in key areas such as labor.

“We want to maintain the agreement; that is our objective. We also want the dispute resolution system to function effectively and be strengthened to avoid decisions that could impact various industries. We are also proposing reciprocity in several mechanisms, such as labor and other areas … Mexico is the top US customer, followed by Canada. Mexico buys more from the United States than China, Japan, or Germany.”

Ebrard also highlighted Mexico’s transformation in the automotive industry under USMCA, noting that most exports now comply with rules of origin. “At the start of the Trump administration, Mexican exports to the United States were roughly 50% under treaty rules and 50% under most-favored-nation status. Today, 85% of exports comply with USMCA rules. Non-compliance results in higher tariffs. For example, automotive tariffs could rise from 2.5% to 27.5%.”

Mexico Attracts Major Investment During USMCA Review. Ebrard highlighted the country’s dynamic foreign investment and the importance of the USMCA review, scheduled to conclude by July 1. Following announcements of US$1.3 billion from Pilgrim’s Pride and US$1 billion from General Motors, Mexico now has a portfolio of US$293 billion in ongoing investment projects, reflecting strong international confidence. 

Electoral Reform. President Claudia Sheinbaum affirmed that the electoral reform her administration will propose will not compromise INE’s independence. Instead, it aims to reduce election costs, guarantee minority representation, and strengthen participatory democracy in Mexico.

“We do not yet have the final proposal. The priority is to guarantee minority representation… that will remain intact. Our focus is on reducing overall costs, since elections in Mexico are among the most expensive in the world. We also want the process to be based on consensus and not overly burdensome, without affecting the functioning of institutions.”