Introduction to the USMCA and its Significance for North American Agriculture
The United States-Mexico-Canada Agreement (USMCA), in effect since July 2020, has modernized North America’s trade framework and become crucial for the economic stability of the region. Among its key sectors, agriculture stands out as both a success story and a persistent source of tension. Its economic importance and regulatory conflicts will dominate the agenda for the critical review scheduled for 2026.
The USMCA’s Relevance to Mexico’s Agricultural Sector
Mexico’s reliance on the USMCA for its agricultural sector is undeniable. With favorable geographical, climatic, and human conditions, Mexico has become a leader in agroindustrial competitiveness. The agreement grants it preferential and tariff-free access to the markets of its partners. The integration of supply chains is profound and extensive, with Mexico’s tariff policies potentially affecting over $40 billion in annual agricultural exports from the United States and Canada.
USMCA’s Regulatory Framework for Agricultural Trade
The USMCA dedicates several chapters to regulating agricultural trade, with Chapter 9 (Sanitary and Phytosanitary Measures – SPM) being the most pertinent to current conflicts. This chapter establishes that any trade restriction based on health concerns must be grounded in “sound science” and not used as an unjustified trade barrier. Furthermore, the agreement regulates Tariff Rate Quotas (TRQs), which limit the quantity of a product that can be imported at a low tariff and have been a recurring source of dispute, particularly in the dairy sector between the U.S. and Canada.
Ongoing Tensions in the Agricultural and Food Sector
The primary focus of controversies under the USMCA lies in agricultural and food sector tensions, highlighting Mexico’s restriction on genetically modified corn. This conflict concluded with a U.S. victory in December 2024, as the measure was deemed lacking scientific basis. Additional recurring issues include U.S. complaints about delays in health authorizations from Mexico’s Cofepris and the rejection of pesticides, along with Mexico’s dissatisfaction with barriers to beef cattle exports.
Preparing for the 2026 USMCA Review
The 2026 USMCA review will be a pivotal moment to assess the agreement’s effectiveness, with agriculture being one of the central themes. To mitigate tariff and regulatory risks, Mexican producers and exporters should adopt a proactive stance. Key recommendations include:
- Diversify supply chains and conduct origin analysis to ensure compliance with USMCA rules.
- Utilize the dispute resolution mechanism when facing unjustified trade barriers.
- Invest in innovation, such as organic farming and biotechnology, to maintain competitiveness in increasingly demanding markets.
- Ensure adherence to labor standards established in Mexican legislation and the International Labour Organization (ILO).
For the agricultural sector to continue driving regional growth and leadership, resolving regulatory differences through dialogue and cooperation under clear rules and reciprocal treatment is essential. The USMCA’s longevity and success hinge on this.
About the Author
The author is the Business Development Director at the Israeli Embassy in Mexico. He holds a degree in International Relations with a specialization in Global Economics from Anáhuac University in Mexico and is a member of the COMEXI Energy and Sustainability UER.
The opinions expressed in this article are the author’s alone.
