The United States-Mexico-Canada Agreement (USMCA), according to the American Society of Trade Organizations (AMSOC), could change from a trilateral to a bilateral agreement.
AMSOC President Larry Rubin stated that the U.S. government currently has other priorities, such as the conflict in the Middle East.
In a press conference, he explained that “there is a strong possibility that the USMCA will become a bilateral agreement, but what is preventing this is the complexity of obtaining ratification.”
He said there is a 40% chance that the trilateral agreement will become bilateral, although he admitted that the political and legislative complexities reduce the likelihood of this scenario occurring in the short term. He added that it would be best for the agreement to remain with all three trading partners.
He added that “given the bilateral perspective, what progress can be made in the next six months? What is very clear is that when El Mencho, leader of the Jalisco New Generation Cartel (CJNG), was captured, some of his top lieutenants in the United States were also apprehended.” He said that, for example, one of the drug trafficking group’s operators was captured in Houston.
Rubin stated that among the most important issues is security, in addition to the importance of allowing greater private investment in the energy sector.
“We know that Mexico competes with other countries in the region. We still need to do more than what is currently required, because there are many countries that are more attractive in the energy sector, so much more can be done,” he explained.
He added that “security is a central theme in the talks, and we would like to see an agreement that could encompass both security and prosperity, leaving the trade agreement as a parallel path.”
Rubin asserted that there is interest in the United States regarding the proposed electoral reforms because “all change generates questions, and there are many unanswered questions… there are questions about how it will operate given the uncertainty it creates.”
Rubin, who introduced Enrique Huesca as the new Director General of AmCham, said that a large portion of North American trade occurs between Mexico and the United States, which is reflected in the bilateral talks that have begun.
He explained that “the bulk of trade is between Mexico and the United States, so the fact that Canada is not as involved in the current discussions as Mexico is reflects the enormous importance that Mexico holds, given its economic figures within the region.”
Source: eluniversal
