Mexico's president, Claudia Sheinbaum, said on Monday that the Mexican government is interested in negotiating a preliminary deal covering the exchange of steel, aluminum and automobiles before the formal review of the U.S.-Mexico-Canada trade pact is completed.
Sheinbaum made the comments during a morning press conference held while U.S. Trade Representative Jamieson Greer was visiting Mexico for discussions. Addressing the significance of the sectors in question, she said: "Obviously, we care a great deal about steel, aluminum, and automobiles," and added, "We hope that a preliminary agreement can be reached."
The president's remarks underscore the importance of those industries to Mexico's export profile. Mexico is a major exporter of vehicles and auto parts, as well as machinery and mechanical equipment, with the bulk of these shipments destined for the United States.
This year's review of the USMCA - the trade pact that covers commerce among the United States, Mexico and Canada - is viewed as consequential for Mexico. So far, Mexico has largely avoided the worst impacts of U.S. tariffs because most of its exports are protected under the North American trade agreement.
At the same time, U.S. officials have signaled they may seek to tighten rules of origin as part of the review. The United States has suggested it will pursue changes intended to prevent goods - particularly from China - from transiting through Mexico to enter the U.S. market tariff-free. The U.S. stated intent to address such transshipment is a central consideration in the review discussions.
Context and next steps
The president's public statement came while bilateral talks were underway in Mexico. Details on timing, scope or specific provisions of any preliminary agreement were not provided during the press briefing. Officials on both sides are participating in talks connected to the broader USMCA review process.
Observers and market participants will be watching whether a preliminary deal on steel, aluminum and autos can be reached ahead of or as part of the formal review negotiations.