Mexico City — The first formal round of negotiations to review the US-Mexico-Canada Agreement concluded in a constructive atmosphere, Mexico’s Economy Ministry said, though the United States proposed raising the required US content in automobiles to 50%.
Economy Secretary Marcelo Ebrard described the talks as having a positive balance, with frank dialogue on key issues. However, sources confirmed that the Office of the US Trade Representative (USTR) proposed increasing the US national content requirement in automotive rules of origin to 50%, aiming to address what it called improper use by third countries.
“We talked about the automotive sector, how we compete with Asian countries and other regions, and how we can integrate more and better, understand each other,” Ebrard said in a video statement. “There were many details, a lot of work behind this, and a very cordial conversation.”
According to Reuters, the Trump administration wants to raise the regional content level for vehicles made in North America to 82% to qualify for preferential treatment under the USMCA, with 50% of that value produced in the United States. Currently, vehicles must have 75% regional content for preferential treatment, and 40% of major parts value must come from high-wage countries like the US or Canada.
Sources told La Jornada that the US presented the proposal, though one noted nothing is official yet.
“The United States concluded the conversations with the objective of reducing the trade deficit with Mexico and strengthening US supply chains,” USTR said in a brief statement. The US delegation, led by Jeffrey Goettman, emphasized ensuring the USMCA benefits American manufacturers, farmers, ranchers, workers, service providers, and businesses of all sizes, while addressing improper use by third countries.
Mexico’s Economy Ministry said other topics covered included steel and aluminum, and the region’s economic security. The next round is scheduled for June 16 in Washington, with a third round on July 20 in Mexico.
“We are already on the path to achieving this review, as provided for by our USMCA,” Ebrard said. “The priority is to generate certainty for investment and preserve jobs linked to the export sector.”
The next round will incorporate agriculture and level-playing-field issues, while continuing discussions on rules of origin. The third round will focus on closing pending points ahead of the joint 2026 review.
