U.S. Report Highlights Trade Barriers With Mexico Ahead of USMCA Review

Mexico City — The United States has issued a report outlining numerous trade barriers it faces in Mexico, increasing pressure ahead of the upcoming review of the USMCA trade agreement.

The 2026 National Trade Estimate Report from the U.S. Trade Representative’s office notes that the U.S. trade deficit with Mexico reached $196.9 billion in 2025, a $25.5 billion increase from 2024.

American companies continue to report challenges with Mexican customs administration, including extended clearance times that raise costs and create uncertainty, according to the document. It also cites a shortage of new customs agents, restrictions on which ports certain products can enter, and coordination problems between Mexican agencies that lead to duplicated processes and requirements.

The report further states that Mexico is adopting technical standards not aligned with widely used North American norms, instead favoring European parameters that can create technical incompatibilities and higher costs for suppliers.

While acknowledging joint work on agricultural concerns, the document points to delays in approving biotechnology products, creating uncertainty and hindering innovation in the agricultural sector.

It criticizes Mexico’s energy policy, stating that legal changes since 2018 to strengthen state-owned companies CFE (Federal Electricity Commission) and Pemex have prevented private companies from effectively participating due to unexplained permit delays, rejections, and inaction on applications.

“In October 2025, Mexico published regulations implementing the Hydrocarbons Sector Law that prohibit certain fuel transshipment activities, reducing logistical flexibility and increasing operational costs for U.S. companies,” the report said.

The U.S. also reported restrictions on foreign companies offering certain electronic payment services in Mexico and some cross-border services. It expressed concern about high levels of piracy and counterfeiting in both physical and online markets.

On labor issues, the Trump administration said it was concerned about the implementation of reforms related to freedom of association and collective bargaining, and warned that Mexico appears not to effectively enforce bans on importing goods made with forced labor.

Regarding environmental matters, the report cited problems with illegal fishing by Mexican vessels in U.S. waters, including the capture of protected species, and illegal logging in Mexico, estimating that 30% to 70% of timber is harvested illegally.

Finally, the document noted that Mexico dissolved the Energy Regulatory Commission and created the National Energy Commission under the supervision of the Energy Ministry, further centralizing energy decision-making. It urged the newly created Telecommunications Regulatory Commission to promote competition in the sector, replacing the former Federal Telecommunications Institute.