WASHINGTON, D.C. — Senators Dave McCormick (R-PA) and Catherine Cortez Masto (D-NV) introduced bipartisan legislation Thursday aimed at strengthening U.S. national security by pressing Canada and Mexico to align with the United States on foreign investment screening during the upcoming joint review of the U.S.-Mexico-Canada Agreement (USMCA).
The Protecting the USMCA from Harmful Chinese Investment Act directs the U.S. Trade Representative (USTR) to prioritize a common North American strategy to address risks from investment tied to the People’s Republic of China. The USTR launched the public consultation process for the 2026 USMCA joint review on September 17.
“The Chinese Communist Party has made no secret of its ambition to dominate critical technologies and key infrastructure in our backyard,” McCormick said. “Canada and Mexico are Pennsylvania and America’s top trading partners. We need a common approach with our neighbors to protect our economies from harmful foreign investment.”
Cortez Masto echoed the concern, noting that “as Communist China attempts to expand its influence worldwide, it becomes even more important that America and its neighbors have one unified plan to combat their efforts.”
Chinese investment in North America has raised alarms in sectors such as telecommunications and advanced manufacturing. A 2024 Financial Times analysis reported growing Chinese activity in Mexico’s supply chains, while Canada has faced its own national security reviews tied to Chinese investments.
The bill urges Canada and Mexico to adopt CFIUS-like mechanisms—mirroring the Committee on Foreign Investment in the United States—to scrutinize deals for national security risks. Canada has already taken steps with mandatory pre-closing notifications in critical sectors, while Mexico lacks a formal system but has signaled openness to creating one.
Under the proposal, USTR would work with the Treasury Department and State Department to provide technical assistance to USMCA partners in developing investment review frameworks. The legislation frames such alignment as a key U.S. objective in the upcoming joint review, emphasizing the need for coordinated defenses against foreign influence from nonmarket economies.
The bill highlights the central role of investment security in the evolving trade relationship among the U.S., Canada, and Mexico, underscoring bipartisan concern about China’s growing economic footprint in North America.
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