U.S. and Mexico Set Fourth USMCA Review Round for September, Keep Supply Chains in Focus

Why Another USMCA Round Is Now Set for September

U.S. Trade Representative Jamieson Greer and Mexican officials concluded a third bilateral negotiation round on the United States-Mexico-Canada Agreement (USMCA) in Mexico City, with both governments agreeing to hold a fourth round in Washington, D.C., in September 2026.

The talks covered economic security, labour, agriculture, electronic payment services, steel and aluminium and derivative products, and automobiles. In a joint statement, Greer and Mexican Secretary of Economy Marcelo Ebrard said the discussions had reinforced the urgency of strengthening North American manufacturing and regional supply chains, while pushing back against "free-riding" by non-parties.

The review, part of the agreement's built-in joint review mechanism, is being closely tracked by exporters, importers and manufacturers whose supply chains depend on the preferential rules of origin and market access that the USMCA provides. The move to schedule another formal round suggests that significant technical and political issues remain unresolved, even as both sides publicly signal constructive engagement.

What the Joint Statement Tells Us About the Real Agenda

The Free-Rider Problem Takes Centre Stage

The explicit mention of "free-riding from non-parties" is a diplomatic way of pointing at Chinese goods routed through Mexico to circumvent U.S. tariffs and benefit from USMCA preferences. Both governments are under pressure to show they can clamp down on transshipment, especially in sectors like steel, aluminium and auto parts, where rules of origin are complex and auditing is difficult. A tightening of certification or regional value content rules in these areas is a plausible outcome, and the September round will likely see concrete proposals.

Why Steel and Aluminium Rules Still Matter

The inclusion of steel and aluminium products as a standalone agenda item signals that the Trump-era Section 232 tariffs and subsequent quota arrangements continue to shape North American trade dynamics. Updates to the USMCA's melt-and-pour requirements or regional sourcing thresholds for metals could directly affect automotive, appliance and construction supply chains. For fabricators and original equipment manufacturers that have built their cost models around current rules, even incremental changes would trigger contract reviews and potentially shift sourcing patterns.

Electronic Payments and the Digital Trade Dimension

The relatively rare mention of electronic payment services at a USMCA review is noteworthy. It could foreshadow a push to align cross-border data flows, fintech regulation or digital customs procedures with the broader trade framework. While details are thin, the fact that it made the agenda alongside traditional sectors like agriculture and automobiles suggests that both countries see digital trade rules as an area where competitive leverage can be gained or lost.

How North American Supply Chain Players Should Prepare

The September round keeps several sector-specific rule changes in play. Companies with North American supply chains should:

• Audit origin documentation now. Focus on steel, aluminium and auto parts where even small adjustments to regional value content formulas could disqualify products from USMCA preferential treatment.
• Stress-test the "yarn-forward" and other textile rules. The fibre-to-garment industry is specifically mentioned in USTR's readout as a stakeholder, meaning that apparel importers who rely on third-country inputs for assembly in Mexico should model tighter enforcement scenarios.
• Watch for digital trade and payments rule changes. Cross-border e-commerce and fintech firms that use Mexico as a hub could face new data localisation or licensing requirements if the electronic payments track leads to binding commitments.
• Prepare for faster customs enforcement. The emphasis on supply chain integrity and curbing free-riding is likely to translate into more rigorous verification visits and demands for detailed traceability documentation by both U.S. and Mexican customs authorities.