With the first six-year review of the United States-Mexico-Canada Agreement (USMCA) coming up on July 1, U.S. Rep. Adrian Smith (R-NE) and 19 other Republican lawmakers say the Trump administration should focus on fully enforcing the trade deal and resolving remaining trade disputes with Mexico.
In a May 22 letter sent to U.S. Trade Representative Jamieson Greer and U.S. Treasury Secretary Scott Bessent, the lawmakers urged them to hold Mexico accountable ahead of the review, expressing concerns over recent actions by the country’s Servicio de Administración Tributaria (SAT), the federal agency responsible for assessing and collecting taxes, administering customs, and enforcing fiscal laws — a rough equivalent to the IRS in the United States.
“Among these issues is the onerous and irregular enforcement practices currently being implemented by Mexico’s SAT, which are placing retroactive and unprecedented burdens on U.S. companies,” wrote Rep. Smith and his colleagues. “Mexico should not be allowed to right its budget imbalances on the back of American companies, particularly given its commitments under USMCA.”
In particular, they expressed concern that “Mexico is reinterpreting tax provisions, conducting retroactive and capricious audits, and employing aggressive ‘pay-to-play’ appeal requirements,” according to the letter.
The members warned that new interpretations and enforcement practices could unfairly target American companies operating in Mexico, and they urged Greer and Bessent to work with Mexican officials to ensure tax and customs policies are implemented fairly, transparently, and consistent with Mexico’s commitments under USMCA.
“These changes make U.S. exporters less competitive,” the lawmakers wrote. “We are concerned that this disparity fails to uphold the central USMCA principle of national treatment.”
Rep. Smith and his colleagues called on Greer and Bessent to continue working with Mexico to ensure new SAT interpretations and provisions are not implemented in a discriminatory or overly burdensome manner.
Among the members who joined Rep. Smith in signing the letter were U.S. Reps. Ron Estes (R-KS), Mike Carey (R-OH), Kevin Hern (R-OK), Darin LaHood (R-IL), Carol Miller (R-WV), Blake Moore (R-UT), Rudy Yakym (R-IN), Randy Feenstra (R-IA), and Jodey Arrington (R-TX).