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Mexico does everything possible to protect trade agreement with the US and Canada, says official

Mexico does everything possible to protect trade agreement with the US and Canada, says official

The Mexican government is doing everything possible to protect North America’s trade agreement with Canada and the United States (TMEC), which will be reviewed in 2026, the Latin American country’s undersecretary of Economy said in an interview published on Friday.

Mexico is working on security and migration issues to “sit at the table” to negotiate “without obstacles,” Rosendo Gutiérrez told Inside US Trade, after the US President-elect Donald Trump will threaten to impose tariffs to its neighbor to the south if those issues were not addressed.

The official said that the government of President Claudia Sheinbaum seeks to support companies in the region to replace inputs from Asia with products manufactured in Mexico, Canada or the United States, an effort that he sees “as a priority before the 2026 review.” , according to the media.

Trump announced in November, after being re-elected as president, that he will impose 25% tariffs on Mexico and Canada if they do not do enough to stop the waves of immigration and the drug fentanyl that reach the US borders. He has also threatened tariffs on China.

Gutiérrez traveled to Washington to meet with American business and agricultural groups, as well as lawmakers, Inside Trade reported.

Mexican officials have been in contact with “close associates” of Trump, but not with officials of the incoming government, the undersecretary detailed, and reported that Mexico seeks to develop an investment selection process similar to the United States Foreign Investment Committee.

In addition, he explained that the Sheinbaum administration tries to “follow the same rules” as its business partners, when asked about a possible investment by the Chinese electric vehicle manufacturer BYD in the country.

Trump and some U.S. auto industry leaders have accused Mexico of being a “back door” for Chinese goods and investments, which the Latin American nation’s government has denied.

Asked about a dispute over Mexican restrictions on the use of transgenic corn, within the framework of the USMCA, the undersecretary affirmed that Mexico will comply with the ruling of the panel analyzing the case, which is expected this month, even if it is unfavorable for the country.

Depending on the result, the Government will evaluate the changes it should make, he added.

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