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Mexico is doing everything possible to protect the USMCA, according to Undersecretary of Economy
Friday, December 6, 2024 - 16:24
Foto Reuters

Rosendo Gutiérrez said that Claudia Sheinbaum's government seeks to support companies in the region to replace inputs from Asia with products manufactured in Mexico, Canada or the United States.

The Mexican government is doing everything possible to protect the North American Free Trade Agreement with Canada and the United States (USMCA), 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 Trade , after US President-elect Donald Trump threatened to impose tariffs on his southern neighbor if those issues were not addressed.

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

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

Gutierrez traveled to Washington to meet with U.S. business and agricultural groups, as well as lawmakers, Inside Trade reported.

Mexican officials have been in contact with Trump's associates, but not with officials in the incoming administration, the undersecretary said, adding that Mexico is seeking to develop an investment screening process similar to the Committee on Foreign Investment in the United States.

He also explained that Sheinbaum's 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.

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Reuters