Mexico continues to pressure the United States to achieve a reduction or elimination of tariffs affecting Mexican products, particularly automobiles and steel, as part of the discussions surrounding the review of the United States-Mexico-Canada Agreement (USMCA).
Mexico’s Secretary of Economy, Marcelo Ebrard, stated that the Mexican government has presented arguments and studies to U.S. authorities to demonstrate that there are conditions that justify preferential treatment for Mexico compared with other U.S. trading partners.
Following the launch of InnovaFest Querétaro, the official explained that one of the main issues Mexico has brought to the negotiating table concerns the automotive industry, a sector considered strategic for the Mexican economy and for North American production integration.
Mexico seeks to reduce automotive tariffs
Ebrard explained that Mexico faces different tariff conditions compared with other countries that export automobiles to the United States.
Given this difference, Mexico argues that it should receive a tariff benefit because of the high level of integration between the Mexican and U.S. automotive industries.
The Secretary of Economy cited Mexico’s purchases of U.S. auto parts as an example, arguing that there is a commercial reason to request a reduction in tariffs.
“So, give me a discount, because I buy more parts from the United States than the other countries I just mentioned,” Ebrard said while explaining Mexico’s position.
The automotive industry represents one of the main components of bilateral trade, due to the supply chains connecting manufacturing plants, auto-parts manufacturers, and consumers in both countries.
Steel is another point of negotiation
Steel is also part of the discussions between Mexico and the United States. Ebrard questioned the application of a 50 percent tariff on Mexican steel products, arguing that trade in this sector does not represent a disadvantage for the United States.
According to the official, Mexico has a steel trade deficit with the United States, an argument that forms part of the strategy to request a review of the tariff measures.
“Mexico has a steel deficit with the United States. So why are you imposing a 50 percent tariff on me?” he questioned.
Mexico’s position seeks to ensure that trade measures are reviewed while taking into account the economic relationship and existing production chains between the two countries.
Mexico asks the U.S. to avoid new tariffs
In addition to requesting specific reductions, Mexico has asked the United States to avoid imposing new tariffs while the USMCA review process is underway.
Ebrard said that this request is part of the ongoing discussions with U.S. officials.
“We have proposed that while the discussions regarding the review of the Agreement are taking place, there should be no additional tariffs imposed. But it is something we discuss every week,” he stated.
The USMCA review will continue in the coming months, while Mexico seeks to use the discussions to defend favorable trade conditions and reduce the impact of tariffs on strategic sectors such as the automotive and steel industries.
Source: infobae
