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Mexico and US will start talks March 16 on reviewing their free trade agreement

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Mexico and US will start talks March 16 on reviewing their free trade agreement
News

News

Mexico and US will start talks March 16 on reviewing their free trade agreement

2026-03-06 05:54 Last Updated At:06:10

MEXICO CITY (AP) — Mexico and the U.S. said Thursday they will start talks March 16 ahead of a review of the free trade agreement that has shaped both economies and kept some of their commerce steady despite U.S. President Donald Trump's constantly changing tariff policy.

The bilateral trade talks are ahead of a scheduled review later this year of the United States-Mexico-Canada Agreement, or USMCA, the latest version of free trade agreements among the U.S., Mexico and Canada dating back to the early 1990s that have intertwined the economies of the three North American countries.

The USMCA has allowed Mexico to avoid much of Trump's protectionist measures because many Mexican goods are covered by the free trade agreement. However, a number of products are not covered, including medium- and heavy-duty trucks, which face a 25% tariff. A 50% tariff on steel, aluminum and copper remains in effect, as does a 17% tariff on Mexican tomatoes.

Mexico’s Economy Secretary Marcelo Ebrard said on X that the first round of upcoming bilateral talks were arranged with U.S. Trade Representative Jamieson Greer, and that they would address issues related to rules of origin, increasing production, supply chain security and integrating economies to boost competitiveness against other regions.

Greer's office said that, after the initial talks, the two sides would “meet regularly thereafter.”

Relations among the three USMCA partners have been strained over the past year by Trump’s protectionist measures, which have set markets and investors on edge. Ebrard and other Mexican officials have been regularly traveling to Washington and meeting with American officials to try to offset tariff threats.

Mexico and Canada also are holding talks to strengthen cooperation on trade and security ahead of the USMCA's scheduled review, six years after taking effect.

FILE - An employee welds metal at a steel tank factory in Mexico City, Feb. 11, 2025. (AP Photo/Eduardo Verdugo, File)

FILE - An employee welds metal at a steel tank factory in Mexico City, Feb. 11, 2025. (AP Photo/Eduardo Verdugo, File)

House lawmakers rejected a war powers resolution to halt Trump’s attack on Iran in a 212-219 vote, a day after the Senate voted down a similar measure.

The U.S. Embassy in Kuwait shut down after retaliatory Iranian strikes on the country, becoming the second American diplomatic mission to fully halt work as the war in Iran escalates. Kuwait is also where six American soldiers were killed by an Iranian drone Sunday.

U.S. President Donald Trump said Thursday he should have a role in choosing Iran’s next supreme leader, raising questions about whether Washington and Israel seek regime change or policy concessions as the conflict has appears increasingly open-ended.

Tehran has warned of the destruction of the Middle East’s military and economic infrastructure, and the war has rattled financial markets, with the Dow dropping 1,000 points as oil prices climb more.

The war has killed at least 1,230 people in Iran, more than 70 in Lebanon and around a dozen in Israel, according to officials in those countries.

Here is the latest:

Trump said Thursday that Iranian diplomats who sought immunity could “help us shape a new and better Iran with great potential.”

He also urged the Iranian people to “help take back your country,” saying the U.S. would provide them with “immunity.”

“So you’ll be perfectly safe with total immunity, or you’ll face absolutely guaranteed death,” Trump said, of the war and ongoing dangers under the current Iranian regime. “And I don’t want to see that.”

The House narrowly rejected a war powers resolution Thursday to halt Trump’s attacks on Iran, an early sign of unease in Congress over the rapidly widening conflict that is reordering U.S. priorities at home and abroad.

It’s the second vote in as many days, after the Senate defeated a similar measure along party lines. Lawmakers are confronting the sudden reality of representing wary Americans in wartime and all that entails — with lives lost, dollars spent and alliances tested by a president’s unilateral decision to go to war with Iran.

While the tally in the House, 212-219, was expected to be tight, the outcome provided a clarifying snapshot of political support for, and opposition to, the U.S.-Israel military operation and Trump’s rationale for bypassing Congress, which alone has the power to declare war.

Trump, speaking from the East Room of the White House, said Thursday that “further action to reduce pressure on oil is imminent.”

”The oil seems to have pretty much stabilized. We had it very low, but I had to take this little detour,” he said.

Trump earlier this week said on social media that he ordered the U.S. development finance arm to provide political risk insurance for tankers carrying oil and other goods through the Persian Gulf.

Political risk insurance is a type of coverage intended to protect firms against financial losses caused by unstable political conditions, government actions, or violence.

At an event with players from MLS champion Inter Miami, Trump said of Iran: “Their navy is gone” and that the U.S. had wiped out “24 ships in three days.”

He added that the country’s anti-aircraft weapons and airplanes “are gone.”

Trump gave the brief update on the war at the top of the event and didn’t provide details, making it difficult to immediately check the accuracy.

“They have no air force they have no air defense,” the president said.

Trump also suggested that Iranian leaders are now ready to make a deal and end the fighting but said : “We want to fight now more than they do.”

The number of people killed in Lebanon since a resurgence in hostilities between Israel and the Hezbollah militant group Monday has risen to 123, with 683 people wounded, the Lebanese health ministry said Thursday.

It was not clear how many of the casualties were civilians. The health ministry had earlier said that seven children were killed.

Meanwhile, Israel struck Beirut’s southern suburbs Thursday evening after issuing an evacuation notice earlier, urging residents to “save your lives and evacuate your homes immediately,” prompting a mass exodus as people scrambled to find shelter.

Two hospitals in the area also evacuated patients and staff ahead of the anticipated bombardment.

Ambassador Jamal Alrowaiei told the U.N. Security Council that Iran’s actions “are threatening the freedom of navigation” and critical energy infrastructure.

Alrowaiei, the Arab representative on the U.N.’s most powerful body, said Iran has targeted “critical infrastructure” in Bahrain and the region. And he echoed the regional Gulf Cooperation Council’s strong condemnation of Iran’s “unjustified” aggression and demand for an immediate halt to its attacks.

“Any attempt to jeopardize navigation in the Strait of Hormuz will lead to an increase in energy prices … and negatively affect international economies,” he warned at the U.S.-called meeting on “Energy, Critical Minerals, and Security.”

Bahrain urges international cooperation “to protect critical corridors and strategic infrastructure” and stresses its support for international law and the sovereignty of nations, Alrowaiei said.

The report came late Thursday night. Israel military said its defense systems were working to intercept them.

Israel on Thursday warned its citizens traveling abroad that the ongoing hostilities could make them targets of attacks or otherwise endanger them. The country’s Government Press Office said in a statement that “several attempts to carry out terrorist attacks against Israelis have been thwarted and disrupted.”

It urged Israelis to conceal Jewish identifiers, avoid traveling through the United Arab Emirates, refrain from sharing personal information on social media and remain vigilant or avoid visiting Jewish sites.

The warning cited recent violence in Canada and Texas, where authorities are investigating whether motive of a gunman who opened fire at a bar in Austin was Iran-related.

Iran has in the past staged “ asymmetric attacks ” targeting Jews and Israelis, including in Europe and South America, and such responses were feared before the war broke out.

Israel’s top general on Thursday said the country’s military had degraded most of Iran’s air defenses and specifically hit sites used to launch missiles toward Israel.

Lt. Gen. Eyal Zamir, the army’s chief of the General Staff, said Israel’s air force had destroyed 80% of Iran’s air defenses and 60% of its missile launchers but noted “the threat has not yet been removed. Every missile is lethal and poses a danger.”

“We are now moving to the next phase of the operation. In this phase, we will further dismantle the regime and its military capabilities. We have additional surprises ahead that I do not intend to disclose,” Zamir said.

The closure will affect tens of thousands of Muslims who would normally come to pray at the mosque compound on Fridays during Ramadan.

All holy sites in Jerusalem’s Old City — including Christianity’s Church of the Holy Sepulcher and Judaism’s Western Wall — would remain closed “to maintain public safety and protect people,” Brig. Gen. Hisham Ibrahim of Israel’s Civil Administration said in a statement on Facebook.

Although the closures will affect worshippers of all faiths, changes to the “status quo” governing Palestinian access to the mosque and surrounding compound have been politically sensitive. The site is the third-holiest in Islam and the holiest in Judaism because it was the location of biblical temples.

Israel had implemented restrictions before war broke out with Iran, including capping the number of worshippers given permits to travel from the Israeli-occupied West Bank to Jerusalem.

It’s the second diplomatic mission to fully suspend operations since the start of the war with Iran.

“While there have been no reported injuries to U.S. personnel, the safety of Americans abroad remains the highest priority of the U.S. Department of State,” it said in a statement about the status of the embassy in Kuwait City.

Shortly before the announcement, the department said that Secretary of State Marco Rubio had called the Kuwaiti foreign minister to express condolences for the deaths of at least two Kuwaiti troops in Iranian retaliatory strikes.

Although numerous U.S. embassies and consulates in the Middle East have closed to the public since the war began, only the consulate in Karachi, Pakistan, had suspended operations.

As oil prices rise further because of the war with Iran, the Dow dropped 1,052 points, or 2.2%, the S&P 500 sank 1.4% coming off a frenetic start to the week, and the Nasdaq composite fell 1.3%.

Airlines and stocks of smaller U.S. companies tumbled to some of the sharpest losses. Oil prices rallied following the latest escalations in the war. Treasury yields also jumped with worries that higher inflation could keep the Federal Reserve from cutting interest rates.

Still, the U.S. stock market has a history of bouncing back relatively quickly following conflicts in the Middle East and elsewhere. That has many professional investors suggesting patience and riding through the market’s swings.

Authorities in the island Gulf kingdom have made several arrests since the war began, including people accused of documenting attacks or pro-Iran demonstrations in the Shiite-majority, Sunni-ruled country.

Bahrain’s interior ministry said the four men had posted videos online that misled the public, spread fear, and harmed security and public order. “This constitutes treason and a clear violation of the nation’s values and principles,” the statement read.

Ali Larijani, the secretary of Iran’s Supreme National Security Council, warned that any U.S. ground forces would be met with a robust and unsparing defense.

Iranians are “ready to disgrace those corrupt American officials by killing and capturing thousands,” he said in a post on X.

American officials, including Defense Secretary Pete Hegseth, have not said they intend to launch a ground invasion but have not ruled one out either.

Ukraine’s President Zelenskyy said Thursday that he has received a U.S. request for support to defend against Iranian drones in the Middle East.

Zelenskyy said he gave an order for equipment to be provided along with Ukrainian experts, but did not offer further details. He added in a social media post that, “Ukraine helps partners who help our security and the protection of our people’s lives.”

Missiles were shot toward Kuwait on Thursday evening, activating air defense systems, the army general chief of staff said in a statement.

The oil-rich country — home to the U.S.’s Ali al-Salem Air Base — has been among the countries hit by Iranian strikes, which have killed six American soldiers and two civilians.

Authorities in Sri Lanka were informed that one of the ship’s engines suffered a failure, the country’s president said Thursday.

The decision to take the crew ashore and the IRIS Bushehr to a Sri Lankan port comes a day after a U.S. submarine sank another Iranian warship off the island’s coast, said President Anura Kumara Dissanayake. He said his government held discussions with Iranian officials and the captain of the ship.

Sri Lankan officials say 87 bodies were recovered and 32 people rescued from the roughly 180 people believed to have been aboard to IRIS Dena sunk Wednesday.

French President Emmanuel Macron is urging the Lebanese militant group to stop attacking Israel and warned Israel against a ground operation in Lebanon.

“Hezbollah must immediately cease its fire toward Israel. Israel must refrain from any ground intervention,” Macron wrote on X.

He said he spoke with Trump, Israeli Prime Minister Benjamin Netanyahu and Lebanese leaders in what is apparently the first diplomatic initiative to try to end the conflict in the tiny country.

The World Health Organization says the pause is due to insecurity, airspace closures and restrictions on the Strait of Hormuz. It’s looking into possible land-based alternatives.

Its eastern Mediterranean chief, Dr. Hanan Balkhy, said the disruption is preventing access to $18 million worth of humanitarian health supplies, while $8 million in shipments cannot reach the hub.

More than 50 emergency supply requests from 25 countries are affected, while $6 million in medicines for Gaza and $1.6 million in polio laboratory supplies are also held up, she said.

WHO has not received any formal requests from Iranian authorities for specific supplies because Iran’s system is “withstanding the current situation,” she said.

The hub last year fulfilled over 500 emergency orders for 75 countries worldwide.

Israel’s ambassador to the United Nations said Thursday it is too soon for diplomacy, as calls grow to end the widening war with Iran.

Danny Danon told reporters Israel must first eliminate Iran’s nuclear program, ballistic missiles, regional proxies and naval threats.

“I think diplomacy will come into action — not yet, not yet,” Danon said. “We have to finish the job.”

He said Israel must continue “to hammer, to dismantle” Iran’s capabilities before turning to diplomacy, adding that he expects the war to last days or weeks, not months.

Danon also said the 2015 Iran nuclear deal failed and that new “effective mechanisms” are needed to prevent Iran from becoming a threat again.

Spain’s prime minister has drawn the U.S. president’s ire for refusing to let America use Spanish bases to support strikes on Iran.

On Tuesday, Trump threatened to cut off all trade with Spain. On Wednesday, Spain’s foreign minister rejected a White House claim that Spain will cooperate.

Sánchez has condemned Iran’s repression but calls the war unjustified and says Spain will not act out of fear.

The fight deepens a broader rivalry. The 54-year-old Sánchez has criticized Israel’s war in Gaza and resisted higher NATO spending while backing legal migration.

▶ Read more about one of Europe’s most prominent left-leaning leaders

The alert did not specify the cause of Friday's anticipated demonstrations, but comes days after Pakistani demonstrators supportive of the Iranian government attempted to storm a U.S. consulate, leading to violent clashes in Karachi and elsewhere that left 22 people dead.

The embassy’s warning Thursday restricts the movement of its personnel nationwide.

Trump in an interview with the news outlet Axios said he wants to be involved in selecting Iran’s next leader and called Ayatollah Ali Khamenei’s son an “unacceptable” potential pick.

“Khamenei’s son is unacceptable to me,” Trump said of Mojtaba Khamenei, the 56-year-old son of the supreme leader killed on the first day of the war. Trump added, “We want someone that will bring harmony and peace to Iran.”

The president also derided him as “a lightweight.’

“I have to be involved in the appointment, like with Delcy in Venezuela,” said Trump, referring to the acting president in the South American country, Delcy Rodríguez, who took power after Trump had the U.S. military capture Nicolás Maduro to face U.S. drug conspiracy charges.

Smoke rises following an Israeli airstrike in the Dahiyeh area of Beirut, Thursday, March 5, 2026. (AP Photo/Hassan Ammar)

Smoke rises following an Israeli airstrike in the Dahiyeh area of Beirut, Thursday, March 5, 2026. (AP Photo/Hassan Ammar)

A billboard showing a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed in U.S.-Israeli strikes, looms over an empty square in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

A billboard showing a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed in U.S.-Israeli strikes, looms over an empty square in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

A truck carries an Israeli tank on a road in northern Israel, Thursday, March 5, 2026. (AP Photo/Ariel Schalit)

A truck carries an Israeli tank on a road in northern Israel, Thursday, March 5, 2026. (AP Photo/Ariel Schalit)

A man passes by a destroyed car and shop on a commercial street that was hit by Israeli airstrikes in Nabatiyeh town, south Lebanon, Thursday, March 5, 2026. (AP Photo/Mohammed Zaatari)

A man passes by a destroyed car and shop on a commercial street that was hit by Israeli airstrikes in Nabatiyeh town, south Lebanon, Thursday, March 5, 2026. (AP Photo/Mohammed Zaatari)

Plumes of smoke rise as strikes hit the city during the U.S.–Israeli military campaign in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

Plumes of smoke rise as strikes hit the city during the U.S.–Israeli military campaign in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

Mourners reach out to coffins during a funeral for people killed during the ongoing U.S.–Israeli military campaign in Qom, Iran, Thursday, March 5, 2026. (Seyyed Mehdi Alavi/ISNA via AP)

Mourners reach out to coffins during a funeral for people killed during the ongoing U.S.–Israeli military campaign in Qom, Iran, Thursday, March 5, 2026. (Seyyed Mehdi Alavi/ISNA via AP)

A billboard shows a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed during ongoing joint U.S.-Israeli military strikes, and the words in Farsi: "His God is alive," in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

A billboard shows a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed during ongoing joint U.S.-Israeli military strikes, and the words in Farsi: "His God is alive," in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

Plumes of smoke rise as strikes hit the city during the U.S.–Israeli military campaign in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

Plumes of smoke rise as strikes hit the city during the U.S.–Israeli military campaign in Tehran, Iran, Thursday, March 5, 2026. (AP Photo/Vahid Salemi)

Healthcare workers unload from a vehicle the bodies of Iranian sailors who died when their IRIS Dena warship sank outside Sri Lanka's territorial waters, in Galle, Sri Lanka, Wednesday, March 4, 2026. (AP Photo/Eranga Jayawardena)

Healthcare workers unload from a vehicle the bodies of Iranian sailors who died when their IRIS Dena warship sank outside Sri Lanka's territorial waters, in Galle, Sri Lanka, Wednesday, March 4, 2026. (AP Photo/Eranga Jayawardena)

Israeli tanks maneuver near the Israel-Lebanon border, in northern Israel, Wednesday, March 4, 2026. (AP Photo/Ariel Schalit)

Israeli tanks maneuver near the Israel-Lebanon border, in northern Israel, Wednesday, March 4, 2026. (AP Photo/Ariel Schalit)

Tracer rounds light the sky as people fire live rounds into the air during a televised speech by Hezbollah leader Naim Kassem in Dahiyeh, Beirut's southern suburbs, Lebanon, Wednesday, March 4, 2026. (AP Photo/Hassan Ammar)

Tracer rounds light the sky as people fire live rounds into the air during a televised speech by Hezbollah leader Naim Kassem in Dahiyeh, Beirut's southern suburbs, Lebanon, Wednesday, March 4, 2026. (AP Photo/Hassan Ammar)

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