House members seek Mexico payment safeguards for U.S. produce sellers
Thirty-seven bipartisan lawmakers have asked U.S. trade officials to negotiate with Mexico for payment protections similar to the U.S. Perishable Agricultural Commodities Act. They argue that American growers face losses when Mexican buyers default, and they want reciprocal coverage across all USMCA countries. Canada already has such a mechanism under Bill C-280, which the letter cites as a model.
The letter arrives as U.S.-Mexico discussions proceed ahead of the 2026 USMCA review, which will address agriculture among other trade issues. American produce exports to North American partners have climbed from $1.4 billion in 1995 to $6.2 billion in 2024, a gain of more than 330 percent, making the absence of Mexican payment protections increasingly consequential for sellers.
Canada enacted its own fresh produce payment trust under Bill C-280 in 2024, modeled on the U.S. PACA framework. The lawmakers' request seeks to extend that same reciprocal coverage to Mexico, which would create consistent payment safeguards across all three USMCA countries and give American growers and shippers greater certainty when selling into the Mexican market.
This dispute could affect the financial security of American produce growers and shippers who sell into Mexico, one of their largest export markets. If protections are secured, smaller operations may gain confidence to expand cross-border sales, potentially supporting rural economies and specialty crop exports. Without such safeguards, the risk of buyer default could continue to discourage some U.S. sellers from pursuing Mexican opportunities, limiting trade growth. The outcome may also set a precedent for how payment protections are handled in future USMCA negotiations.