CRS: Congress Can Provide Oversight on Mexico High-Level Economic Dialogue
A recent Congressional Research Service report on U.S.-Mexican trade relations noted that members of Congress have varying views on USMCA, the trade deal that has integrated North American supply chains, particularly in the auto industry.
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The report noted that Mexico is the second-largest export market for the U.S., at $324 billion, with the top exports being fossil fuels at $56 billion, motor vehicle parts at $17.5 billion, chemicals at $14 billion and resin at $11 billion.
Mexico was also the second largest source of U.S. imports in 2022 after China, with the U.S. buying $72 billion worth of Mexican motor vehicles, almost $58 billion in motor vehicle parts, almost $38 billion in computer equipment, almost $19 billion in oil and gas and $16 billion in electrical equipment.
"Some policymakers view NAFTA/USMCA as vital for U.S. firms, workers and farmers, and beneficial to U.S. economic interests," the report said. Others are disappointed in the scaling back of investor protections in the NAFTA rewrite, or are concerned that Mexico won't fully implement the labor reforms it promised. "Numerous policymakers and industry representatives have expressed serious concerns about the Mexican government’s actions to strengthen the state’s role in the energy sector," the report said.
The report said Congress may want to conduct oversight of the U.S.-Mexico High-Level Economic Dialogue, which has covered semiconductor and information technology supply chains, electric vehicle production, regulatory cooperation, border modernization and more.