economy and politics

The T-MEC celebrates 3 years of its entry into force and is approaching its first review

The T-MEC celebrates 3 years of its entry into force and is approaching its first review

The positive of the T-MEC

Since Donald Trump arrived at the White House, even since his campaign, he has threatened to take the United States out of NAFTA, which he described as “the worst treaty in history.”

Once an agreement was reached, that ghost disappeared from the map, recalled Jerry Pacheco, executive director of the International Business Accelerator in Santa Teresa, New Mexico.

“The T-MEC has been a spectacular success,” considers Juan Carlos Baker, former Undersecretary of Economy and academic at the Universidad Panamericana (UP), noting that the fact that Mexico, the United States and Canada have agreed and entered into The trade agreement came into effect and the uncertainty about doing business in North America was removed.

For the National Association of Importers and Exporters of the Mexican Republic (ANIERM) it is important to highlight the greater dialogue that has taken place between the three partners of the T-MEC for the solution of controversies, which translates into that “the rules are more clear”, said its president, José Gerardo Tajonar.

Having included a dispute resolution section, Chapter 31, is related to providing certainty and the rule of law in the region. “Working today in a country with a binational culture, as a company, knowing that there is a binational regulatory framework for dispute resolution is important,” said Daniel Baima, president of AmCham.

For ANIERM, it is also necessary to celebrate that, with the T-MEC, Mexican truck drivers can enter the United States to deliver merchandise, as well as that SMEs can import their products to the United States in a B2C scheme (business to customer). up to 800 dollars with certain customs benefits from the US government.

The T-MEC also included issues that were not part of its predecessor, such as: environmental and labor issues, the interviewees agreed.

To the first review

Despite the positive that the T-MEC has left for the region, and so that another 25 years do not elapse for a renegotiation as it happened, this new agreement includes a review clause.

“On the sixth anniversary of the entry into force of this Agreement, the Commission will meet to conduct a ‘joint review’ of the operation of this Agreement, review any recommendations for action submitted by a Party, and decide on any appropriate measures. Each Party may provide recommendations for the Commission to take action, at least one month before the joint review meeting of the Commission takes place”, Article 34.7 reads. Review and extension of validity of the USMCA.

Although the review is three years away, it is important to note that 2024 is an election year and the first review will take place in 2026. That leaves about a year to prepare the issues that each country is going to put on the table for discussion, said Juan Carlos Baker.

The three trading partners must be clear “that it is a review process and not a renegotiation process,” he clarified.

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