USTR Flags Trade Barriers in Mexico Across Key Sectors

On March 31, the Office of the US Trade Representative (USTR) submitted the 2025 National Trade Estimate (NTE) to President Trump and Congress. This annual report identifies foreign trade barriers that hinder US exports and outlines USTR’s ongoing efforts to address these challenges. The report examines 59 countries, among them Mexico, outlining sectors like agriculture, telecommunications and pharmaceuticals.

"No American President in modern history has recognized the wide-ranging and harmful foreign trade barriers American exporters face more than President Trump. Under his leadership, this administration is working diligently to address these unfair and non-reciprocal practices, helping restore fairness and put hardworking American businesses and workers first in the global market," says USTR Representative Jamison Greer.

Trade Challenges in Mexico

The report highlights several trade barriers US exporters face when conducting business with Mexico. Among these, the most significant issues include non-tariff barriers, customs inefficiencies, and regulatory delays that hinder trade flows and disrupt market access.

In terms of customs and import barriers, the NTE report states that Mexico continues to struggle with inconsistent regulatory interpretations at different border crossings, uneven enforcement of standards, and short notice periods for new customs requirements. Often, procedural changes are announced with less than two weeks’ notice, leaving US exporters with insufficient time to adapt. At the same time, some goods remain restricted to specific ports, complicating logistics, particularly for e-commerce shipments from US SMEs.

Although USMCA prohibits restrictions on the number of ports customs brokers may operate in, Mexico’s Customs Law (Art. 161) still limits brokers to four ports unless affiliated with a customs agency. The US government continues to urge Mexico to align its regulations with USMCA provisions to facilitate smoother trade operations.

Regulatory Challenges in Medical and Pharmaceutical Sectors

Regulatory approval delays continue to be a primary concern for US medical devices, pharmaceutical, and agricultural exporters. Mexico’s Federal Commission for Protection Against Sanitary Risks (COFEPRIS) remains understaffed, leading to significant delays in granting sanitary registrations and conducting factory inspections.

Despite ongoing technical discussions with the US Food and Drug Administration (FDA), companies seeking approval for FDA-approved products in Mexico report waiting periods exceeding one year. Although COFEPRIS has made efforts to reduce backlogs, structural inefficiencies persist, creating uncertainty for exporters.

Agricultural Trade Barriers

A key agricultural concern involves Mexico’s handling of glyphosate imports. The Ministry of the Environment and Natural Resources (SEMARNAT) has denied import permits for glyphosate-containing products without public consultation or scientific justification. While glyphosate remains registered for use in Mexico, regulatory hurdles continue to limit market access. Since December 2020, actions to gradually replace glyphosate and its derivatives with safer alternatives, preserving biodiversity and the ancestral knowledge of indigenous peoples and farmers were published in the Official Gazette of the Federation.

As a result, the NTE report states that delays in registering pesticides and agricultural chemicals have prevented many US companies from renewing existing licenses. Some businesses have lost their registrations due to administrative holdups, effectively blocking imports of key agricultural products.

Technical Barriers to Trade

Mexico’s new quality infrastructure regulations, published in 2024, have raised concerns about limited stakeholder engagement. The United States has criticized the short 10-day comment period provided for regulatory feedback and is advocating for alignment with international standards to ensure a transparent and fair process.

In the telecommunications sector, US exporters have expressed concerns over duplicative in-country testing requirements for mobile devices. The Federal Telecommunications Institute (IFT) mandates outdated testing protocols, limiting the number of accredited facilities available for compliance checks. The United States is pressing Mexico to update these standards and incorporate them into the existing Mutual Recognition Agreement for Conformity Assessment.

Disputes Over Genetically Engineered Products

Mexico's approach to genetically modified (GM) agricultural products has led to multiple trade disputes under USMCA. A 2023 decree banned the use of GM corn in tortillas and dough, with further restrictions placed on GM corn for animal feed and human consumption. The United States challenged these measures through USMCA dispute resolution mechanisms, arguing they lacked scientific justification and violated market access commitments.

In December 2024, a dispute settlement panel ruled in favor of the United States, prompting Mexico to declare the contested measures ineffective. However, ongoing scrutiny is required to ensure full compliance with the ruling. On March 18, the Mexican government officially issued a decree in the DOF, prohibiting the use of genetically modified (GM) corn throughout the country. This decree formalizes constitutional reforms to Art. 4 and 27, which aim to conserve and protect native corn varieties, MBN reported.

Intellectual Property Concerns

Mexico remains on the USTR’s 2024 Watch List for intellectual property rights (IPR) concerns, including widespread piracy and counterfeiting. High-profile markets in Mexico City and Guadalajara continue to be hubs for counterfeit goods, and online piracy rates remain among the highest globally.

Legal enforcement of IPR violations remains weak due to poor coordination among authorities, limited prosecutorial resources, and prolonged judicial proceedings. The US government is urging Mexico to strengthen penalties for infringement and improve IP enforcement mechanisms.