Mexico City, Mexico – The US and Mexico on Friday concluded their first round of US-Mexico-Canada Agreement (USMCA) trade talks amid escalating pressure from President Donald Trump's administration.
The USMCA is due for its first review since coming into force in 2020, with talks starting Wednesday led by Mexico's Economy Secretary Marcelo Ebrard and US Deputy Trade Representative Jeff Goettman joining on Thursday.
Talks concluded on Friday having focused primarily on revising the North American Free Trade Agreement (NAFTA) and navigating Trump's damaging tariff policies.
"We talked about rules of origination, the automotive sector, how we compete with countries in Asia and other parts of the world, and how we can integrate more," Ebrard said in a statement.
The Mexican delegation described the talks as being held "in a constructive environment and with frank dialogue." They said the discussion ended with a "net positive."
The US Trade Representative Office said in a statement that the US approached the talks with the goals of reducing Washington's trade deficit with Mexico and strengthening US supply chains.
"During this first round, negotiators discussed priority issues related to automotive rules of origin, steel, and aluminum, and economic security," the statement said.
"The United States and Mexico recognize the importance of advancing cooperation to enhance regulatory compatibility to strengthen sectors, including medical devices, pharmaceuticals, cosmetic products, and others."
Washington demanded that at least half of the components of autos manufactured in North America be sourced from the US. This is a break from the current USMCA terms, which require 75% of auto content be manufactured in North America, but have no US provision.
Trump has repeatedly threatened to pull out of the USMCA, arguing it doesn't benefit the US economy and casting a long shadow over any attempts to renegotiate the terms.