US Lawmakers Warn USMCA Could Become Tool to Shield Big Tech From AI Oversight

July 24, 2026
By Mintesinot Nigussie

US lawmakers have raised concerns that technology companies are seeking to use provisions in the United States-Mexico-Canada Agreement (USMCA) to limit government oversight of artificial intelligence, warning that trade rules could restrict efforts to regulate emerging technologies and protect consumers. Representative Jan Schakowsky and Senator Elizabeth Warren have opened an investigation into whether major technology companies are lobbying through industry trade groups to influence USMCA negotiations and prevent the United States, Mexico and Canada from establishing stronger AI standards.

In a letter to US Trade Representative Jamieson Greer, the lawmakers questioned whether Big Tech groups are attempting to use digital trade provisions to restrict regulatory authority over artificial intelligence systems, including measures aimed at addressing consumer protection, data privacy and accountability concerns. “U.S. trade policy should focus on creating jobs, strengthening supply chains, and lowering costs for American families — not advancing the interests of Big Tech CEOs by letting their companies run amok,” the lawmakers said in the letter.

The lawmakers said existing USMCA provisions already limit governments from requiring companies to disclose source code outside open investigations, arguing that the rules could make it harder for regulators to examine and address potential harms linked to AI technologies. “This language is far broader than what is necessary to protect companies from intellectual property theft or infringement,” they said.

Their inquiry follows concerns over increased lobbying by technology companies against AI regulation. The lawmakers cited industry efforts opposing consumer protection rules, competition measures and data security requirements, including lobbying campaigns against proposed AI regulations. According to an analysis by Public Citizen cited by the lawmakers, technology industry associations representing companies including Google, Microsoft, Amazon and Facebook have pushed for digital trade policies that could restrict governments’ ability to regulate artificial intelligence and the wider digital economy.

The lawmakers warned that such restrictions could affect the ability of federal and state governments to address issues including the use of AI in employment decisions, privacy protections, data transfers and the use of copyrighted material to train AI models. “(T)his digital trade strategy would limit — or even potentially bar — federal and state governments’ ability to enact or enforce domestic policies to counter Big Tech’s influence and protect consumers from harm,” the lawmakers said. They also raised concerns over potential risks associated with expanding AI use, including employers replacing workers through automated systems and AI chatbots interacting with minors in harmful ways. “It is crucial that governments have the tools they need to effectively protect their citizens against these harms,” they said.

The lawmakers urged the US Trade Representative to ensure that any revised USMCA agreement removes what they described as “source code secrecy provisions” that could prevent regulators from examining AI systems. They asked Greer to provide details by August 5, 2026, on whether and to what extent the Trump administration has allowed technology companies to influence ongoing USMCA negotiations.

Source: FSX Business News