Key Facts
- Review. US declined to renew the USMCA on 1 July 2026; the pact runs to 1 July 2036.
- Next step. Yearly reviews of the pact now run until all three countries agree to extend it.
- Pemex loss. Pemex, Mexico’s state oil company, posted a third-quarter net loss of MXN 10.8 billion (US$582 million).
- Tariffs. The US charges 50% on steel and aluminium and 25% on many Mexican autos.
- Avocados. Growers burned up to 52 tonnes of avocados in Michoacán after pest larvae were reported.
- Power Index. Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
The United States declined to renew the USMCA trade pact with Mexico and Canada, so it stays in force until 2036 but now faces a review every year.
In Plain English
- USMCA: The trade agreement linking the US, Mexico and Canada, called T-MEC in Mexico and CUSMA in Canada.
- Marcelo Ebrard: Mexico’s Economy Secretary, who leads its trade talks with Washington.
- Pemex: Petróleos Mexicanos, Mexico’s state-owned oil company.
- Section 232 tariffs: A US trade measure used to tax imports of autos and metals.
Why the USMCA Was Not Renewed in July 2026
The United States declined on 1 July 2026 to renew the USMCA, so the pact now runs only to 1 July 2036 under yearly reviews. The USMCA is the agreement that governs trade between the US, Mexico and Canada.
US Trade Representative Jamieson Greer, who leads Washington’s trade negotiations, said the US did not agree to renew it in its current form. The agreement remains in force while the three countries address what Washington calls its shortcomings and trade deficits.
Under Article 34.7, the agreement’s review clause, the countries must now meet every year until all three agree to extend the pact. Economy Secretary Marcelo Ebrard said on 14 October that the treaty would last 10 years with an annual review, a reading that sits awkwardly with Washington’s statement.
Mexico negotiates with the US in bilateral rounds, and a third round was held in July. Ebrard said on 16 October that a fourth round, in Washington, would take place before the end of 2026.
The US charges 50% on steel and aluminium and 25% on many Mexican autos. Mexico is pressing for cuts on steel and cars.
How Pemex’s Third Quarter Looks
Pemex, Mexico’s state oil company, reported a third-quarter net loss of MXN 10.8 billion (US$582 million) on Friday 30 October. Its financial debt stood at US$77.6 billion.
Fuel theft remains a drag on the company. Second-quarter losses from fuel theft were reported at MXN 9.180 billion (US$494 million).
Theft is therefore one cost among many, next to debt and taxes, though the money is gone. We could not confirm a nine-month theft total, so we do not print one.
Peso conversions here use a rate of about 18.57 pesos per US dollar on 3 November, from RT, a market-data provider.
Why Mexican Avocado Growers Burned Fruit in Michoacán
Growers in Michoacán, Mexico’s main avocado state, burned up to 52 tonnes of avocados after authorities reported finding avocado seed weevil larvae, a crop pest, in fruit bound for export. The fruit reportedly came from Jalisco, Colima and Nayarit.
The burning took place on Thursday 29 October in Peribán, a Michoacán town, with the load headed to a packing plant in Uruapan, the state’s avocado hub. The incident follows a harvest suspension by Michoacán producers to protest low prices.
No end date has been reported. Mexico’s avocado business depends heavily on the US market.
Buyers north of the border are the main customers for Michoacán fruit.
What Links These Stories
The stories share one fact: Mexico’s economy leans on the US market, and Washington now reviews the terms of that trade every year.
The clearest losers are growers who lose fruit and income and a state company that loses money. Each shows how much of the cost of North American trade sits outside tariff schedules, while the yearly reviews decide the rules around it.
The reports behind this Big Read
What It Means for US Readers
For importers, the rules for claiming USMCA preferences are unchanged for now, but the yearly reviews add uncertainty over autos, steel and farm trade. US holders of Pemex bonds should weigh its quarterly losses against its US$77.6 billion debt.
Avocado buyers should watch whether the harvest suspension and the pest finding affect supply from Michoacán. No price data is available yet.
What to Watch Next
The US midterm elections are today, 3 November. We have found no official Mexican reaction yet.
Ebrard said on 16 October that a fourth bilateral round would take place before the end of 2026.
What Is Not Known
The date of the fourth round is unclear, and sources differ on the exact dates of the July round. We could not confirm Pemex’s nine-month fuel theft total.
The avocado reports rest on press accounts without a statement from Mexico’s plant-health agency.
Sources
USTR: Ambassador Greer Issues Statement on USMCA Joint Review · Baker Tilly: USMCA Joint Review Guide · The Rio Times: USMCA review analysis · The Rio Times: Pemex fuel theft losses
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
In depth
Frequently Asked Questions
Is the USMCA still in force?
Yes. The US declined to renew it on 1 July 2026, but it remains in force until 1 July 2036, with annual reviews until all three countries agree to extend it.
Did Pemex lose money in the third quarter?
Yes. Pemex reported a net loss of MXN 10.8 billion (US$582 million) for the third quarter and financial debt of US$77.6 billion, results it published on 30 October.
Why were Mexican avocados burned?
Authorities reported finding avocado seed weevil larvae, a crop pest, in fruit bound for export, and growers burned up to 52 tonnes of it. The fruit came from other states, according to local reports.