Trump Pursuing Bilateral Trade Deal With Mexico As USMCA Talks Continue
U.S. President Donald Trump and Mexican President Claudia Sheinbaum both indicated in October that their countries are close to reaching a bilateral trade deal that could serve as a first step toward extending the United States-Mexico-Canada Agreement (USMCA).
At an October 19 rally in Park City, Kansas, Trump claimed that “Mexico and us are very close to a great deal” that would reduce the U.S. trade deficit. And at a press conference the following morning, Sheinbaum agreed that the two countries were “very close” to an agreement, although “there are still some [unresolved] issues.” A few days earlier, The Wall Street Journal reported that objections from Secretary of Commerce Howard Lutnick had created obstacles to the negotiations.
According to El País, Mexico is seeking a reduction in U.S. tariffs on steel and automobiles that Trump imposed, while the United States wants Mexico to impose stronger cybersecurity standards, particularly in relation to China. Additionally, Reuters has reported, the United States is seeking increased American content in certain products assembled in Mexico.
The United States and Mexico are aiming for an agreement before the U.S. midterm elections. U.S. negotiations with Canada, by contrast, collapsed in August.
Extending the USMCA
These negotiations come amid broader discussions to extend the USMCA. On July 1, the United States announced that it would not accept a clean renewal of the agreement, beginning a renegotiation process that could last up to 10 years. Observers largely believe that Trump will eventually decide to extend the USMCA. Last month, for example, U.S. Representative Adrian Smith (R-Neb.) stated, “I can’t imagine that President Trump and his team want to punt that for the next administration.”
The New American has previously reported that the USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, is a major step toward a full-blown North American Union. Although the United States’ decision not to accept a clean renewal created an opportunity to eventually withdraw from the entangling treaty, there is a large risk that a renegotiated agreement could further integrate the United States into a North American regional body.
Regional Integration
The USMCA and NAFTA have already significantly integrated the U.S. economy with Mexico’s and Canada’s. For example, although Trump imposed high tariffs on the two countries last year, the vast majority of Canadian and Mexican products continue to enter tariff-free, since they comply with the USMCA. El País noted that 85 percent of imports from Mexico are not subject to tariffs.
The United States must terminate the USMCA before it loses even more of its sovereignty via regional integration. Instead of renegotiating the agreement, the Trump administration must withdraw the United States from it entirely — and Congress must introduce and enact legislation to that effect. Urge your U.S. representative and senators to protect U.S. sovereignty by getting out of the USMCA and other international agreements.
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