Economy Minister Marcelo Ebrard announced that Mexico will initiate an early review of the USMCA in the second half of 2025 to reduce trade policy uncertainty and strengthen North American economic ties.
In a move aimed at reducing uncertainty across North American markets, Mexico’s Economy Minister Marcelo Ebrard announced on May 13, 2025, that the government plans to launch an early review of the United States–Mexico–Canada Agreement (USMCA) in the second half of this year. Speaking at a ministry event with financial technology firms in Mexico City, Ebrard emphasized that accelerating the review—originally scheduled for 2026—would help both consumers and investors better understand the pact’s rules and mechanisms before any potential renegotiation pressures intensify.
Under the terms of the USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, the three member countries agree to a joint review every six years. By shifting that timeline up by roughly eighteen months, Mexico seeks to clarify outstanding questions about tariff triggers, rules of origin requirements and dispute‐settlement procedures. Ebrard noted that an early start could be “convenient for us,” allowing Mexico to align its export strategies with evolving global trade norms.
Ebrard told journalists that an accelerated review would make trade policies “easier and clearer” for stakeholders on both sides of the border, helping to alleviate the unpredictability introduced by periodic tariff threats. He argued that shortening the lag between reviews ensures that emerging issues—such as digital trade standards, labour‐mobility provisions and environmental obligations—can be addressed in a timely manner, rather than waiting until the treaty’s midpoint.
The decision to expedite the USMCA review comes amid continued pressure from the United States. Former President Donald Trump has publicly called for an early renegotiation of the agreement, and his administration’s imposition of tariffs—most notably a 25% duty on steel and certain automotive goods—has injected volatility into cross‐border commerce. Despite those duties, Ebrard stressed that the USMCA remains in force and that an early review could preempt the need for reactive trade measures by clarifying the treaty’s intent and application.
Mexico is already targeting specific sectors for improved terms, including steel, aluminum, automobiles and tomatoes—industries that have felt the brunt of U.S. tariffs and fluctuating duties. Ebrard highlighted that the government is working closely with industry associations to compile data on export volumes, tariff impacts and supply‐chain bottlenecks, ensuring that negotiating positions reflect real‐world economic costs and opportunities.
Beyond immediate tariff concerns, the accelerated review is positioned as a response to the broader trend of nearshoring. According to China’s Xinhua News Agency, the USMCA could unlock “enormous opportunities” for Mexican industries within shifting supply chains, especially as companies look to diversify away from distant production hubs. By clarifying key provisions on rules of origin and customs procedures, Mexico hopes to attract more manufacturing and technology investment, underpinning economic recovery in the post‐pandemic era.
Domestic business groups have welcomed the announcement. At a recent Employers’ Confederation of the Mexican Republic (Coparmex) forum, Ebrard outlined a cooperative dialogue framework designed to reduce uncertainty in sectors ranging from agriculture to aerospace. Local news outlet El País reported that a “more cordial” trade dialogue with the United States has already facilitated preliminary discussions on tariff waivers for steel and aluminum—a sign that a less confrontational tone can yield concrete results.
Some multinational exporters have moved swiftly to adapt. French auto‐parts supplier Valeo announced that 90% of its Mexican‐manufactured products destined for the U.S. market now meet USMCA compliance standards, effectively insulating them from new duties. Companies like Valeo underscore the stakes of legal certainty: compliance not only preserves market access but also accelerates investment decisions in regional production facilities.
The acceleration of the USMCA review also aligns with ongoing bilateral economic dialogues. In February, Mexican and U.S. officials agreed to maintain an open channel on broader economic issues—including supply‐chain resilience and foreign investment traceability—while reaffirming the 2026 review date. With the new timeline now set for 2H2025, both governments must coordinate to ensure that technical discussions dovetail with political consultations at the presidential level.
Looking ahead, Ebrard has indicated that formal negotiating teams will be assembled in the coming weeks, with Mexican counterparts due to meet U.S. Trade Representative Katherine Tai and Canadian Trade Minister Mary Ng. Analysts say the success of an early review will hinge on three factors: aligning sectoral interests across 12 chapters of the agreement, enforcing transparent dispute‐settlement mechanisms and integrating emerging policy areas such as digital trade and environmental protection. If all parties adhere to the expedited schedule, Mexico could secure greater predictability for exporters and consumers alike—potentially setting a new precedent for proactive treaty management in a volatile global trade environment.
