The US and Mexico have launched the third round of talks to revise the US-Mexico-Canada Trade Agreement (USMCA), with Canada not participating in the latest negotiations, at a time when trade tensions between the North American countries have increased.
The meetings are taking place in Mexico City, just a day after US President Donald Trump announced the imposition of new 50% tariffs on a range of Canadian products, deepening trade clashes between Washington and Ottawa.
The US administration is seeking changes to the current trade agreement, with the aim of reducing the trade deficit, restoring industrial production to the US, and increasing American content in products manufactured in the region, especially in the automotive industry.
On the other hand, Mexico aims to reach a new agreement by the end of the year and seeks relief from US tariffs on important sectors such as vehicles, steel and aluminum.
Another key point of the negotiations is protecting the North American market from the influence of Chinese products. The US wants goods from China not to use Mexico or Canada as an entry route to the US market.
The review of the USMCA agreement is expected to be one of the main economic issues between the three countries, while differences over trade policies and tariffs are adding pressure on relations between the North American allies.
