U.S. and Mexican negotiators began a second round of talks in Washington on Tuesday aimed at revising the United States-Mexico-Canada Agreement (USMCA), with discussions focusing on agriculture and energy. The negotiations come amid uncertainty over the future of the trade pact after President Donald Trump said he was not interested in renewing the agreement, despite its role in supporting nearly $1.6 trillion in annual North American trade. Agricultural groups are urging the administration to extend the deal for another 16 years while improving market access for U.S. farm products, including genetically modified corn, ethanol, and dairy exports.
The talks follow earlier negotiations in Mexico City, where the United States proposed stricter automotive content requirements, including a rule that 50% of North American vehicle content must originate in the U.S. Canada remains excluded from the formal negotiations, although Canadian Trade Minister Dominic LeBlanc continues discussions with U.S. Trade Representative Jamieson Greer. Trade experts warn that prolonged negotiations or failure to renew the pact could increase the risk of a U.S. withdrawal, which would significantly disrupt regional trade and investment.
Agriculture and energy remain key sticking points in the discussions. U.S. farm groups argue that losing USMCA would be devastating for American farmers, as Canada and Mexico account for more than one-third of U.S. agricultural exports. Meanwhile, U.S. energy companies are pressing Mexico to ease policies favoring state-owned oil producer Pemex and to provide greater opportunities for foreign investment. Negotiators are also expected to address ongoing disputes over genetically modified corn and ethanol exports, with another round of talks scheduled in Mexico City during the week of July 20.
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