On Monday, Mexican President Claudia Sheinbaum reiterated her support for the benefits of the United States-Mexico-Canada Agreement (USMCA) and indicated her willingness to speak with U.S. President Donald Trump “if necessary.”
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She recalled that her government’s primary objective is to preserve the regional treaty and highlighted its benefits to all three countries since its entry into force in July 2020.
The Mexican President explained that one of the United States’ priorities is to strengthen rules of origin, particularly in the automotive sector, to ensure that a greater portion of the value chain is produced within North America.
However, Mexico advocates for a regional vision that includes all three partners, not just the United States. Economy Secretary Marcelo Ebrard is leading the negotiations this week in Washington, along with advisors from the Mexican government.
Sheinbaum clarified that the USMCA is not being renegotiated, but rather is undergoing the six-year review stipulated in the agreement. If the three countries confirm their continued participation before July 1, the treaty will automatically be extended for another 16 years; otherwise, a process of annual reviews will begin, which could last up to a decade.
Mexico is also seeking to reduce the tariffs imposed by the U.S. on steel, aluminum, and vehicles under Section 232 of U.S. trade law, in order to maintain regional competitiveness.
The USMCA replaced the North American Free Trade Agreement (NAFTA), which was in effect since 1994, following a renegotiation initiated during Trump’s first term. The current review is the first since its entry into force in 2020.
[ SOURCE: teleSUR ]
