The United States is urged not to hastily extend the U.S.-Mexico-Canada Agreement (USMCA) for another 16 years without addressing significant trade loopholes that allow steel imports from China, South Korea, and Vietnam to enter North America via Mexico and Canada. Since USMCA's implementation, overall steel imports into Mexico have climbed 45%, with imports of Mexican rebar in 2024 soaring roughly 1,148% above their pre-USMCA average.

USMCA has strengthened North American trade and deepened commercial ties with the United States’ largest trading partners, Mexico and Canada. However, the agreement’s scheduled review is intended to evaluate its effectiveness and make necessary corrections rather than serve as a mere formality.

Negotiations to close these loopholes are progressing, particularly with Mexico, while talks with Canada may intensify following President Trump’s recent deployment of section 338 tariffs. The administration advocates for strengthening steel-related rules of origin and adopting a "melted and poured" requirement to ensure steel receiving preferential treatment is genuinely produced in North America, not just processed after originating elsewhere.

Extending USMCA before resolving these issues could weaken the United States' leverage in trade negotiations.

Sources