Senators Dave McCormick (R-PA) and Catherine Cortez Masto (D-NV) have introduced the Protecting the USMCA from Harmful Chinese Investment Act. The bill directs the U.S. Trade Representative (USTR) to prioritize alignment with Canada and Mexico on foreign investment screening during the upcoming 2026 joint review of the U.S.-Mexico-Canada Agreement (USMCA).
The legislation is aimed at addressing national security risks from investment by the People’s Republic of China (PRC). USTR initiated the public consultation process for the 2026 USMCA joint review on September 17.
According to the senators, Chinese companies have expanded supply chain roles and increased manufacturing in Mexico, raising U.S. concerns, while Canada continues to face economic threats from the PRC. Canada’s Investment Canada Act includes national security reviews similar to the U.S. Committee on Foreign Investment in the United States (CFIUS), though mandatory pre-closing notification for critical sectors was only recently introduced. Mexico does not have a comprehensive framework but has indicated openness to developing one.
Bill Provisions
- Reiterates the importance of U.S. trade with Canada and Mexico.
- Establishes a USMCA joint review objective requiring:
- each USMCA country to implement a foreign investment review framework similar to CFIUS;
- coordination among USMCA countries to address threats from nonmarket economy investments.
- Directs USTR to coordinate with the Treasury Department and State Department to provide technical assistance to USMCA partners in developing investment security frameworks.
The bill text and a one-page summary are available online.
