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United States trade officials expect to see concrete progress on talks regarding the United States-Mexico-Canada Agreement before the end of the year, focusing heavily on rules of origin, labor enforcement, and environmental standards, according to testimony delivered by the Office of the United States Trade Representative.
US Trade Representative Jamieson Greer outlined the administration’s timeline during a hearing before the Senate Finance Committee prior to traveling to Mexico for a third round of bilateral negotiations. Greer told lawmakers that the administration wants to secure robust rules of origin to incentivize domestic manufacturing across North America rather than sourcing from regions with high excess capacity or non-market practices.
The USMCA officially entered into force in 2020 during the first term of President Donald Trump, replacing the 1994 North American Free Trade Agreement. When a key deadline to renew the pact arrived on July 1, the Trump administration declined to keep the agreement in its current form, arguing that more time is required to resolve ongoing trade differences with its neighbors.
As a result of missing that renewal window, the treaty remains in force through 2036 unless any member nation decides to withdraw. However, the agreement is now subject to mandatory annual reviews. Greer noted that Mexico has been particularly resistant to annual reviews, joining business and service sector groups on both sides of the border that are pushing for greater regulatory stability.
According to the USTR, Greer stated that he is confident the two sides can develop options for President Trump, Canadian leaders, and Mexican leaders to consider regarding potential provisional agreements or specific administrative measures by the end of the year.
Bilateral Meetings in Mexico City
During his multi-day trip to Mexico lasting through Friday, Greer scheduled formal meetings with Mexican President Claudia Sheinbaum and Economy Minister Marcelo Ebrard, according to the USTR office. The discussions aim to iron out differences on labor and environmental enforcement provisions that members of the US Congress have pressed the administration to strengthen.
“I have also heard from people in the Congress about the need to strengthen the application of labor and environmental standards in relation to Mexico,” Greer testified to the Senate Finance Committee. He added that implementing and verifying those stronger standards will take time.
Investment Climate and Trade Flows
Mexico remains a primary destination for foreign direct investment from American corporations, ranking alongside Brazil and Guyana. According to an Atlantic Council analysis report presented in Washington, Mexico captures 70% of the more than $28 billion annually directed toward greenfield projects in the region.
Business organizations across North America continue to monitor the bilateral talks closely, seeking predictability as negotiators work through the complex revisions mandated by the post-2020 framework.
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