Mexico sees investment risk as T‑MEC review deepens trade tensions

Business leaders warn that the ongoing review of the United States‑Mexico‑Canada Agreement (T‑MEC) is creating uncertainty for investment in Mexico. Juan Pablo Cisneros Madrid, head of the Consejo Coordinador Empresarial, said remarks about the treaty have raised financing costs and could deter investors, especially as the United States seeks to limit Chinese products entering the region.

Senator Luis Donaldo Colosio Riojas presented a proposal urging the Economy Ministry to adopt specific measures to protect the Mexican steel and manufacturing sectors, citing U.S. Section 232 tariffs that raise steel duties by up to 50 percent. He highlighted the importance of the steel hub in Nuevo León, which generates over half of the country’s steel output.

Former U.S. Trade Representative Robert Lighthizer, a chief architect of the original NAFTA, told Foreign Affairs that the next T‑MEC revision must tighten rules of origin and reduce the U.S. trade deficit with Mexico. He warned that eliminating the agreement would be “politically costly” and called for greater U.S. content in Mexican exports while curbing Chinese inputs.

Analysts note that the United States has opted for annual reviews rather than a 16‑year extension, keeping the negotiation climate fluid. The combined pressure from U.S. protectionist aims and Mexico’s push for sector‑specific safeguards is shaping the future of North‑American trade and investment.