Mexico Begins Talks in the U.S. and Canada to Evaluate the USMCA
12:50 17/10/2024 - PesoMXN.com
AGUASCALIENTES - Next week, a delegation from the Secretariat of Economy, led by Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez Romano, will travel to Washington to engage in discussions with their counterparts and establish partnerships for the evaluation of the USMCA. At the same time, they will head to Canada to define a stance. “With the change in government in the United States, we will start talking to key individuals there, such as importers from Mexico, to see what alliances we can form, and we will also work with government representatives,” said Gutiérrez Romano following the inauguration of the 30th Congress of Mexican Foreign Trade held by Comce.
Boosting the Semiconductor Sector
The official mentioned that Mexico is preparing to conduct an effective review of the treaty and dismissed the idea of opening negotiations. “I wouldn’t say we are defending the USMCA; it's more of a review since it's in very good shape. We have been in contact with the United States and Canada to make this as effective as possible for all three countries,” he assured. Furthermore, he indicated that they are analyzing areas that can be improved and strengthened, but the priority is to maintain existing benefits, such as tariffs, and ensure that Mexico remains the main trading partner of the United States. The agenda includes issues like rules of origin and the goal of having Mexico's exports made up of locally produced components, “that’s the challenge we face in the coming years, to start manufacturing many products that currently come from Asia right here in the country.” A labor mechanism will also be considered to streamline processes and improve oversight, “we aim for optimal working conditions for our workers, both in the U.S. and Canada, as well as in Mexico.” The visit to Washington is scheduled for next Wednesday and will last three to four days; afterward, they will travel to Canada, where a stance will be defined, as there will be no change in government.
In another area, the undersecretary noted that Mexico has enormous opportunities with the nearshoring strategy, especially in the semiconductor sector, where companies are estimated to plan investments of up to $10 billion. He emphasized that the U.S. is interested in relocating its supply chains, and Mexico needs to position itself as the manufacturing hub of North America. “There is significant interest from both U.S. and Mexican investors to generate a production boom in chips.” In fact, he shared that there is already a plan presented to President Claudia Sheinbaum, who has given the green light for Mexico to move forward with this transformation.
The review of the USMCA represents a crucial opportunity for Mexico to reinforce its role in North America's supply chain, especially in strategic areas like semiconductors. Leveraging nearshoring could not only strengthen the Mexican economy but also attract investments that drive the country's industrial development. It is vital for the government and private sectors to work together to maximize these opportunities, ensuring optimal conditions for investment and local production.
