Trump Says a New Mexico Trade Deal Is Being Drawn Up
Mexico says it is on its own route, and that Chinese goods passing through are barely 1% of its exports. The post Trump Says a New Mexico Trade Deal Is Being Drawn Up appeared first on The Rio Times .
President Donald Trump announced on 19 August 2026 that the United States is initiating a new trade agreement with Mexico, describing it as a superior deal for the nation compared to previous arrangements. However, details about the proposed arrangement remain undisclosed. Meanwhile, Mexico’s economy secretary, Marcelo Ebrard, stated that Mexico is pursuing its own separate route, distinct from Canada’s concurrent discussions with Washington.
Ebrard expressed sympathy towards Canada’s talks without perceiving them as a threat. He emphasized that Mexico is following its own independent path. Despite Trump's initial claim on 19 August 2026, subsequent reporting revealed that key terms of the Canada deal were still unresolved, leading to the collapse of negotiations and subsequent reinstatement of US tariffs on Canadian goods.
The US Trade Representative, Jamie Jamieson Greer, highlighted several components of the tentative Canada agreement, such as comprehensive market access for American goods, economic security commitments, and digital trade provisions. However, as the Canada deal was not finalized, some elements might not be applicable to the forthcoming Mexico trade deal.
Ebrard dismissed allegations from the US that Mexico serves as a conduit for Chinese goods, asserting that such transshipments account for less than 1% of Mexico's total exports. The Economy Ministry of Mexico refuted these claims, emphasizing that the country's role in facilitating Chinese goods is minimal. The USMCA, the trade pact involving the United States, Mexico, and Canada, came into effect on 1 July 2020, with a mandatory joint review scheduled for 1 July 2026—marking the sixth anniversary of its implementation.
If all three nations agree in writing, the agreement is set to extend for an additional 16 years. However, should any country withhold approval, annual reviews will continue until consensus is reached or the agreement expires in 2036. This review mechanism is an integral part of the USMCA's structure. Currently, the new Mexico trade deal is in its nascent stages, separate from the USMCA.
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