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2026-07-17 21:18:13
[US Trade Representative Makes Clear Statement: USMCA Renewal Must Include Provisions to Reduce Trade Deficit with Mexico] ⑴ US Trade Representative Greer revealed at the Aspen Security Forum that he had received clear instructions from the President to include deficit reduction measures in the trade agreement renewal negotiations with Mexico, and stated that current consultations are progressing smoothly and both sides are taking a pragmatic approach. ⑵ Over the past year, Mexico's exports to the US totaled approximately $558 billion, an increase of about 8% year-on-year, while imports from the US totaled approximately $359 billion, an increase of about 7%. The continued expansion of the US trade deficit with Mexico constitutes the core political driving force of the negotiations. ⑶ Greer acknowledged that the US prefers to import goods from Mexico rather than some Asian economies, citing geographical proximity and supply chain resilience as advantages, but still emphasized the need to manage the deficit, demonstrating that its trade policy combines pragmatic cooperation with protective constraints. ⑷ From a market psychology perspective, if the final agreement includes quantifiable deficit reduction targets, it may affect Mexican manufacturing investment expectations and the peso exchange rate. Subsequent attention should be paid to whether specific measures involve substantive tools such as adjustments to rules of origin, industry quotas, or exchange rate clauses.
