Lighthizer Urges USMCA Renewal, Warning Crippling Mexico’s Economy Would Harm the U. S. - The Yucatan Times
WASHINGTON DC — Robert Lighthizer, former U. S. Trade Representative and a principal architect of the United States-Mexico-Canada Agreement (USMCA), has called for the renewal of the trilateral trade deal, warning that dismantling the agreement or paralyzing Mexico's economy would be a strategic mistake for American interests. Speaking on a Foreign Affairs podcast, Lighthizer emphasized that
Robert Lighthizer (Photo: Special)WASHINGTONDC—Robert Lighthizer, former U. S. Trade Representative and a principal architect of the United States-Mexico-Canada Agreement (USMCA), has called for the renewal of the trilateral trade deal, warning that dismantling the agreement or paralyzing Mexico’s economy would be a strategic mistake for American interests. Speaking on aForeign Affairspodcast, Lighthizer emphasized that while the agreement requires adjustments to address the trade deficit, increase regional content, and curb reliance on Asian manufacturing inputs, terminating the pact would carry unsustainable political and economic costs. “Paralyzing the Mexican economy would also be very bad for the United States,” Lighthizer stated, pointing to shared geographic, cultural, and supply-chain linkages. “We, unlike most countries in the world, have a direct interest in Mexico’s prosperity. ”Lighthizer advocated using targeted tariffs and stricter rules of origin to incentivize higher North American content in manufactured goods. He noted that much of the trade deficit with Mexico stems from products assembled in Mexico using components originating from China. However, he acknowledged that shifting manufacturing operations out of China and into Mexico remains a net positive for U. S. economic security. Expressing optimism for upcoming joint review talks, Lighthizer praised lead negotiators, including U. S. Trade Representative Jamieson Greer and Mexican Economy Minister Marcelo Ebrard. He also complimented Mexican President Claudia Sheinbaum, describing her as “one of the smartest world leaders on the stage today. ”Economic analysts, including Daniel Becker, CEO of Grupo Financiero Mifel, noted that Lighthizer’s comments signal that Washington seeks to recalibrate, rather than dissolve, regional integration under USMCA. For Mexico, the focus on tightening regional supply chains presents a constructive framework to align economic security, curb Asian imports, and preserve cross-border trade stability across North America. TYT Newsroom