Mexico, USA and Canada, rough summit

This Thursday and Friday the representatives of the governments of Mexico, the United States and Canada will have a virtual meeting and everything indicates that it could be a rough summit.

And it is that the United States Trade Representative (USTR), the United States government agency responsible for recommending and developing a trade policy for the President of the United States, is being strongly pressured by very influential legislators to harden its position against to Mexico and Canada.

The accusations are very specific. They accuse Mexico of noncompliance and ask that their government respect their country’s interests in the context of the trilateral trade agreement.

There are several and on various topics, the claims.

The concern about the policies and actions recently taken by the Ministry of Energy and the Mexican government’s Electricity Reform initiative stands out, which from its judgment, if approved in the terms proposed, would arbitrarily block US investors.

The day before, US senators from the Democratic and Republican parties sent a letter addressed to Katherine Tai, Trade Representative of the United States government, in which they demanded that the official apply the legal resources established by the T-MEC to enforce their chapters and uphold the interests of their country.

The letter is signed by Ron Wyden, chairman of the United States Senate Finance Committee, and Mike Crapo, a member of the same committee.

On the other hand, Kevin Brady, a ranking member of the Committee on Ways and Means of the House of Representatives of the United States, addressed a letter to Katherine Tai, Trade Representative of that country, in which he demanded that the official enforce the terms of the USMCA.

It should be noted that Jayme White, the United States government’s Deputy Trade Representative, worked until a few months ago for Democratic Senator Wyden.

The Mexican team will be led by Luz María de la Mora Sánchez, Undersecretary of Foreign Trade, of the Ministry of Economy, who has extensive experience.

Brady was much more specific and direct in his accusations.

He warned that the electricity reform would significantly delay the transformation of Mexico’s electricity market into a “reliable, financially sound and low-carbon system.”

He pointed out that the Mexican government has canceled 1,866 import and export permits for fuels to the private sector, which has blocked the efforts of North American companies to “expand a distribution network” in the Mexican market, as well as the import of fuels from US refineries, with high safety and quality standards. Senators from the Democratic and Republican parties were much broader in their comments.

Among the breaches by Mexico to the T-MEC stand out delays in the application of the labor reform, obstacles to the trade of biotechnological products, delays in the authorization of pharmaceutical products, as well as the suspension of hydrocarbon import permits to more than 80 countries. energy companies.

In the event that the sub-trade representative White includes all these claims in the talks with his Mexican counterpart, without a doubt, the bilateral relationship could begin to have greater tension.

It must be remembered that in recent days, the Mexican government requested a dispute settlement panel in the context of the T-MEC on the issue of rules of origin in the automotive industry.

In addition, it remains to be seen if the decision of the Joe Biden government to grant tax incentives to consumers who purchase electric cars made in the US is applied.

The bone of contention that will probably have the greatest difficulties is that related to the energy issue.

In Mexico, preparations have begun for the open parliament discussion of the initiative. Government agencies intensified their defense of both the policies adopted in energy matters and the coming reform.

The Mexican government has said that it is a sovereign energy policy and in the US businessmen and legislators assure that it goes against the trilateral trade agreement. We will see.

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Marco A. Mares

Journalist

Rich and Powerful

He has worked uninterruptedly in newspapers, magazines, radio, television and the Internet, in the last 31 years he has specialized in business, finance and economics. He is one of the three hosts of the program Alebrijes, Águila o Sol, a program specialized in economic issues that is broadcast on Foro TV.



Reference-www.eleconomista.com.mx

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