Mexico | Trade defense: domestic front in the USMCA review

Industrial overcapacity and the rise in trade remedy investigations underscore the importance of strong institutions. In the context of the USMCA review, these capabilities are essential to Mexico’s competitiveness and its credibility as a trading partner.

Key points

• Key points:
• The United States identified the effects of industrial overcapacity as one of the challenges to be addressed in the USMCA review.
• Since 2016, Mexico has supported international initiatives to address subsidies and, more recently, has endorsed joint statements calling for coordinated action against trade distortions associated with industrial overcapacity.
• Industrial overcapacity does not, in itself, constitute an unfair trade practice, but it may be associated with dumping or subsidies that warrant trade remedy investigations.
• In 2025, Mexico initiated 21 antidumping procedures, compared with an annual average of four between 2021 and 2023. As of September 2026, the International Trade Practices Unit (UPCI) had 64 ongoing proceedings, its highest level on record.
• Institutional capacity to investigate unfair trade practices is particularly relevant amid shared concerns between Mexico and the United States over trade distortions.

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