Mexico's AI Law Threatens USMCA Trade Review, Industry Warns
Mexico's Chamber of Deputies approved AI-related labor and copyright reforms on April 7, 2026, with 335 votes in favor. The Mexican Association of the Information Technology Industry (AMITI) says the law could undermine the 2026 USMCA review and create technical impossibilities for digital platforms and small businesses.
The reforms modify the Federal Labor Law and Federal Copyright Law to regulate AI use in protecting performers' images and voices. Proponents argue the measures protect entertainment workers. AMITI and other industry groups contend the law conflicts with North American trade commitments and cannot be enforced as written.
Technical Impossibility and Scale
The reformed Article 87 of the Federal Copyright Law requires express consent for every use of protected content, including voice and AI-generated results. AMITI argues this requirement is technically unfeasible.
Generative AI systems and large language models process billions of text and image fragments continuously without human intervention. Requiring individual authorization for each piece of content would make these services unworkable, the association said.
Sofía Pérez, AMITI's director general, said: "If every person used a language model and had to request authorization for processes expressed in Article 87, the services would become unfeasible."
Conflict With USMCA Article 19.17
The law may violate Article 19.17 of the USMCA, which protects digital platforms from liability for third-party content. Mexico's new rules could impose high compliance burdens that conflict with these negotiated safeguards.
If a user uploads content without required permissions and the platform faces liability, it creates a precedent that weakens protections for digital intermediaries. This could deter investment in Mexico's tech and creative sectors.
The Mexican Internet Association (AIMX) warned that the reforms increase legal uncertainty and compliance costs. The original bill set a three-year maximum term for use authorizations-a period AMITI called insufficient for large corporations and potentially fatal for small and medium-sized enterprises.
Timing and Trade Negotiations
AMITI says passing the law before formal USMCA review negotiations begin in 2026 weakens Mexico's negotiating position. The association published a tripartite document with U.S. and Canadian counterparts arguing that AI should function as a technological enabler, not a subject of restrictive regulation.
Elsa Ramírez, an AMITI committee member, said the law conflicts with Chapter 19 of the USMCA, which covers digital commerce. The association wants AI and cybersecurity included in the agreement to ensure aligned regulation across North America.
Manuel Morante, an intellectual property lawyer at Arochi & Lindner, said the USMCA review presents an opportunity for Mexico to advance AI regulation. The United States and Canada are likely to propose AI standards that will pressure Mexico to develop its own framework-but doing so through hasty legislation before negotiations could limit Mexico's leverage.
Undefined Terms and Duplicate Penalties
The law introduces the term "AI" without providing a legal definition. This omission creates uncertainty for courts and future litigation, as judicial interpretation will vary without clear guidance.
MORENA legislators removed proposed fines of up to 586,000 Mexican pesos (approximately $34,000 USD) after pressure from radio, television, and dubbing sectors. However, the Federal Copyright Law already includes penalties for improper use of protected content.
AMITI warned that the new reform adds a second layer of penalties tied to technology use. Pérez said: "Since fines already exist for the misuse of content, the law should not duplicate them simply because technology is involved."
Next Steps
The bill moves to the Senate for further analysis. AMITI said it has begun meetings with the Culture Commission, Economy Commission, and Digital Rights and AI Commission to encourage text revisions before a final vote.
AI for Legal professionals should monitor this case closely. The law illustrates how regulatory overreach-even with good intentions-can conflict with international trade rules and technical reality. Understanding these tensions is essential for advising clients on AI compliance across borders.
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