Mexico is threatening to file a formal USMCA complaint if Texas does not stop inspecting cargo at the border.
Texas Governor Greg Abbott began inspections earlier this month in an effort to crack down on human and contraband smuggling. Last April, the inspections prompted great supply chain disruptions until Abbott reached a deal with the governors of four neighboring Mexican states.
Mexico says the inspections are time-consuming and are costing U.S. and Mexican firms millions of dollars.