T‑MEC stays active as review fuels investment uncertainty in Mexico

The United States‑Mexico‑Canada Trade Agreement (T‑MEC) continues to operate despite the automatic renewal clause not being triggered after six years, according to Ulises Fernández, Chihuahua’s secretary of Innovation and Economic Development. He said the treaty’s provisions remain unchanged and businesses can keep operating under its framework while a scheduled review proceeds.

At the same time, Mexican manufacturers and business groups warn that the ongoing T‑MEC review and the prospect of new tariffs are creating uncertainty that deters fresh foreign direct investment (FDI). Mauricio Massud, president of the State of Mexico’s Council of Chambers and Business Associations (CONCAEM), noted that about 85 % of the $21.4 billion FDI recorded in the first quarter of 2026 was reinvested earnings, with only roughly 8 % representing new projects. He stressed that tariff‑related cost pressures and lack of clarity on future trade rules are discouraging new investment, which is essential for industrial growth and employment.