The chair of the House Ways and Means trade subcommittee and 19 other Republicans are urging the Trump administration to hold Mexico accountable ahead of a six-year joint review of the U.S.-Mexico-Canada Agreement.
The lawmakers, led by Rep. Adrian Smith, R-Neb., are raising concern over actions by Mexico’s federal tax agency in a May 22 letter to U.S. Trade Representative Jamieson Greer and U.S. Treasury Secretary Scott Bessent.
New interpretations and enforcement practices could unfairly target U.S. companies doing business in Mexico, the lawmakers said. They urged Greer and Bessent to work with Mexican officials to ensure tax and customs policies are implemented transparently and within the bounds of Mexico’s commitments under the USMCA trade pact.
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“Mexico should not be allowed to right its budget imbalances on the back of American companies, particularly given its commitments under USMCA,” the letter said. “In particular, we are concerned that Mexico is reinterpreting tax provisions, conducting retroactive and capricious audits, and employing aggressive ‘pay-to-play’ appeal requirements.”
The USMCA six-year review is slated for July.
Earlier this week, House Ways and Means Committee Democrats pressed the administration to tone down the rhetoric heading into the discussions with Canada and Mexico on the future of a North American trade deal. They argued the deal’s environmental, labor and economic security provisions could be bolstered, but stressed it should remain a trilateral agreement.
Oliver Ward contributed to this story.
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