financetom
Business
financetom
/
Business
/
US Democrat urges stronger USMCA rules on Chinese goods, factories in Mexico
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US Democrat urges stronger USMCA rules on Chinese goods, factories in Mexico
Mar 12, 2026 9:00 AM

WASHINGTON, March 12 (Reuters) - The U.S. must renegotiate the North American trade deal to ensure that China cannot inflict a new "shock" to U.S. manufacturers via Chinese-owned factories in Mexico, Democratic Senator Ruben Gallego urged the Trump administration on Thursday.

Gallego, who is from Arizona, wrote in a letter to President Donald Trump and his trade representative, Jamieson Greer, that in an upcoming review, the U.S.-Mexico-Canada Agreement's rules of origin need to be strengthened to ensure that government-supported Chinese firms cannot use USMCA as a "back door" to access the U.S. market.

"Chinese exports to Mexico and Chinese firms' direct investment in Mexico raises the possibility of another China shock occurring in the United States via goods entering through the Southern border," Gallego wrote.

He also urged Greer and Trump to demand a minimum wage in Mexico's manufacturing sector, where auto workers average only $5.70 an hour compared with $35.30 in the U.S. A wage floor would provide Mexican workers with more stability, addressing a root cause of illegal migration to the U.S., he said.

Gallego, who voted to approve the USMCA deal in December 2019 as a member of the House of Representatives, said that some USMCA provisions had failed to deliver on their promises and needed to be strengthened, including a $16-per-hour labor value content requirement for certain automotive components.

He also called for restoration of the Department of Labor's Bureau of International Labor Affairs agreements to help build up Mexico's labor standards, which were cut by the Trump administration.

The letter comes as Greer and Mexican Economy Minister Marcelo Ebrard are scheduled to start negotiations next week on a six-year review of the USMCA trade pact that was required under the agreement. 

A USTR spokesperson did not immediately respond to a request for comment, but Greer has often raised concerns about China's investment in factories in Mexico and other countries when it has growing excess manufacturing capacity at home, particularly in the steel and automotive sectors.

Such excess capacity in China and 15 other U.S. trading partners is the focus of a new unfair trade practices investigation announced by USTR on Wednesday that is aimed partly at rebuilding the Trump administration's tariff pressure after a Supreme Court setback.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Kraft Heinz cuts annual organic sales forecast as demand wanes
Kraft Heinz cuts annual organic sales forecast as demand wanes
Jul 31, 2024
(Reuters) -Kraft Heinz ( KHC ) slashed its organic sales forecast for 2024 on Wednesday, signaling that higher prices of its snacks and ready-to-eat meal kits would pressure consumer demand for the remainder of the year. Packaged food companies such as Kraft Heinz ( KHC ), Conagra and General Mills are contending with slowing demand after price hikes over the...
T-Mobile US Q2 Earnings; Revenue Rise
T-Mobile US Q2 Earnings; Revenue Rise
Jul 31, 2024
07:33 AM EDT, 07/31/2024 (MT Newswires) -- T-Mobile US ( TMUS ) reported Q2 earnings Wednesday of $2.49 per diluted share, up from $1.86 a year earlier. Analysts polled by Capital IQ expected $2.27. Revenue for the quarter ended June 30 was $19.77 billion, compared with $19.20 billion a year earlier. Analysts surveyed by Capital IQ expected $19.57 billion. The...
Eurozone GDP Growth Expected to Stay Below Trend for The Time Being, Says ABN Amro
Eurozone GDP Growth Expected to Stay Below Trend for The Time Being, Says ABN Amro
Jul 31, 2024
07:30 AM EDT, 07/31/2024 (MT Newswires) -- Eurozone gross domestic product (GDP) surprised to the upside in Q2, with the economy growing 0.3% versus 0.2% consensus, said ABN Amro. Ahead of the aggregate release, upside surprises in France and Spain were offset by a surprise contraction in Germany, wrote the bank in a note to clients. Growth in Italy was...
Delta Air Lines CEO says CrowdStrike outage to cost carrier $500 million, CNBC reports
Delta Air Lines CEO says CrowdStrike outage to cost carrier $500 million, CNBC reports
Jul 31, 2024
(Reuters) -Delta Air Lines ( DAL ) CEO Ed Bastian said the carrier would take a $500 million hit related to the CrowdStrike ( CRWD ) outage, CNBC reported on Wednesday. The airline has been the slowest among major U.S. carriers to recover following the tech failure that led to more than 2,200 flight cancellations on July 19. Analysts estimate...
Copyright 2023-2026 - www.financetom.com All Rights Reserved