Mexico, the United States and Canada seek to accelerate their trade integration

The Free Trade Commission (CLC) of the Mexico, United States and Canada Agreement (USMCA) seeks to intensify efforts towards the “full implementation” of the agreement, in preparation for its scheduled review in two years, at the conclusion of its fourth

At the meeting, which takes place almost four years after the entry into force of the agreement, the ministers responsible for Trade from the three countries were present: Katherine Tai from the United States, Raquel Buenrostro from Mexico and Mary Ng from Canada.

In a joint statement, the three ministers highlighted that they have given instructions to “redouble efforts to encourage full implementation, which will help ensure that the North American economy continues to serve as a model for competitiveness, as well as robust, broad-based growth.” and just”.

Subsequently, they noted that the agreement must be reviewed by the three countries in 2026 and that it is crucial to “progress towards full implementation of the agreement” in this period.

One of the issues addressed by the ministers in Phoenix was the full implementation of Decision Number 5, which came into force in February 2023. This measure aims to avoid the interruption of trade flows in North America during emergency situations.

The three countries have also agreed to strengthen cooperation regarding “other countries’ practices” in sectors such as the automotive industry, which undermine the agreement and harm workers in the United States, Canada and Mexico.

During the meeting in Phoenix, the representatives of the United States and Canada took the opportunity to hold bilateral meetings with the Mexican Ministry of Economy. Both the United States and Canada expressed concerns to Mexico about some of the policies implemented by Mexican President Andrés Manuel López Obrador.

Specifically, Canada’s Ministry of International Trade said in a statement that Ng expressed to Buenrostro her concerns about “Mexico’s policies on renewable energy, mining and the new law on an adequate and sustainable diet.”

The Canadian minister “also stressed the need to protect the integrity of the North American market for steel and aluminum.”

Mexican automotive industry and TMEC

Groups from the Mexican automotive industry committed to collaborating with the next president, focusing on the review of the T-MEC in 2026 and “nearshoring.”

“(We are going to) work with whoever occupies the presidency of the republic as of October 1, from the moment the transition begins, the automotive sector reaffirms its faith in Mexico and its decision to continue investing,” said Guillermo Rosales, executive president of the Mexican Association of Automotive Distributors (AMDA).

Odracir Barquera, general director of the Mexican Association of the Automotive Industry (AMIA), explained that Mexico has established itself as a world power and, therefore, the next president will face challenges such as ‘nearshoring’, the review of the T-MEC and the 2030 agenda of sustainable development goals.

In addition, he emphasized the need to guarantee adequate conditions for nearshoring and electromobility to boost economic growth and development during the coming decades in Mexico.

When asked about the benefits or risks of United States tariffs on Chinese vehicles, Rosales indicated that this issue is linked to geopolitical considerations and is temporary due to the US elections next November.

In this sense, the leaders highlighted the importance of Mexico preparing for nearshoring by guaranteeing the rule of law, improving logistics and foreign trade infrastructure, providing sufficient, clean energy at competitive prices, and the availability of adequate human capital.

The importance of the automotive industry for Mexico lies in the fact that it represents almost 4% of the national gross domestic product (GDP) and 20.5% of manufacturing GDP, more than any other sector, according to the Mexican Association of the Automotive Industry (AMIA).

Source: infobae