Date and Time
Wednesday, August 12, 2026
9-10 a.m. MST
Location
222 S. Main Street, Salt Lake City
Greenberg Traurig
Mexico: Where proximity meets possibility 🇲🇽
Mexico is drawing attention from companies building and rethinking North American supply chains. But as investment moves, trade rules and the legal environment are moving with it.
That brought Utah business leaders to Greenberg Traurig’s Salt Lake City office with practical questions: What happens to USMCA? How should companies account for Mexico’s changing legal environment? And should businesses be looking at Mexico for manufacturing, sourcing, sales — or all three?
Attorneys Gabriel Lozano and Guillermo Sanchez Chao from Greenberg Traurig’s Mexico City office joined the conversation. Greenberg Traurig is a global law firm with 51 locations across the U.S., Europe, the Middle East, Latin America, and Asia, including Salt Lake City.
Here’s what businesses wanted to know.
What happens to USMCA?
USMCA remains in effect, but its future terms are still being negotiated.
On July 1, the U.S. declined to extend the agreement for another 16-year term, moving it into annual joint reviews. U.S.-Mexico negotiations continued later that month, putting rules of origin, regional sourcing, steel and aluminum, labor, economic security, and other issues on the table.
North American trade integration is expected to continue, even as the review process could change how companies qualify for USMCA benefits. For businesses, the question isn’t simply whether the agreement continues. It’s what companies may need to do differently to keep benefiting from it.
Following U.S. Trade Representative Jamieson Greer’s visit to Mexico City on July 22–24, Greenberg Traurig outlined several areas worth watching: higher North American content requirements, greater scrutiny of inputs from China and other non-North American sources, enhanced origin tracing, labor and environmental enforcement, and sector-specific economic-security requirements.
For companies making long-term investments, the takeaway is practical: build a Mexico strategy that can adapt as the rules change.
Should companies still nearshore in Mexico?
Yes, when the business case supports it.
Mexico offers shorter transit times, similar time zones, and close integration with North American production. But proximity is only part of the opportunity.
Mexico has 14 free trade agreements covering more than 50 countries, giving companies options for sourcing inputs, manufacturing, and reaching customers in other markets.
And entering Mexico doesn’t necessarily mean establishing a full operation on day one.
Companies have several ways to structure their operations, from working with distributors and logistics providers to establishing a Mexican entity. Another option is IMMEX, a Mexican government initiative that allows foreign companies to import raw materials, components, and machinery into Mexico tax- and duty-free, as long as the finished goods are eventually exported.
Each approach comes with different customs, tax, liability, and operational considerations. The right structure starts with what the company is trying to accomplish.
What about the risk?
Mexico’s changing judicial system was another concern in the room.
For companies, managing that uncertainty starts with practical decisions: carefully evaluating counterparties, structuring contracts appropriately, and considering arbitration and mediation provisions to manage potential disputes.
Trade compliance is another part of the equation. Supplier documentation, customs valuation, certifications, rules of origin, and forced labor requirements can all create exposure — including when a compliance issue originates elsewhere in the supply chain.
The goal isn’t to wait for every uncertainty to disappear. It’s to understand where the risks sit and structure accordingly.
Manufacturing base or growth market?
Potentially both.
Companies can look at Mexico as more than a place to nearshore production. Depending on the business, the opportunity could include strengthening a North American supply chain, finding suppliers, reaching customers in Mexico, or using the country’s broader trade network to support international growth.
The starting point is the business objective — then the legal, trade, tax, and operating structure follows.
Continue the conversation
