Mexico City, Mexico - Mexico and the US are starting talks to revise the North American free trade agreement, officials said Wednesday, with negotiations overshadowed by tariff pressure from US President Donald Trump and cross-border security issues.
The US-Mexico-Canada (USMCA) agreement is vital for the Mexican economy as the US accounts for over 80% of its exports.
The treaty is set to be updated every six years. The first round of the bilateral talks, being held in Mexico City, will run until Friday.
Mexican President Claudia Sheinbaum said Wednesday she was optimistic the neighbors could reach an agreement.
"It is going to be a very productive dialogue," she said, noting that Economic Secretary Marcelo Ebrard had met with US Trade Representative Jamieson Greer the previous evening.
Ebrard said in a statement the talks aim to "identify concrete results benefiting the region."
"Mexico and the United States reaffirmed their commitment to continue strengthening bilateral cooperation in favor of a more integrated, dynamic, and robust North America," he added.
Greer's office said in a news release that the talks "will feature negotiations on economic security and rules of origin for key industrial goods."
"The negotiations will focus on ensuring that the USMCA benefits US manufacturers, farmers, ranchers, workers, and service suppliers, and businesses of all size, including our small and medium-sized enterprises," it added.
Future rounds of negotiations will take place in Washington in June, then Mexico City in July.
Trump reportedly wants to exit USMCA
The agreement between the three countries is being revised this year for the first time since its implementation in 2020.
Trump's threats to pull the US from the agreement, arguing it doesn't benefit the US economy, have overshadowed the first round of discussions.
US media have reported that Trump told advisors in February he wanted to exit USMCA after accusing Mexico of opening the door for Chinese products in the region.