July 14, 2020

Mexican businessmen reject the "extreme" demands of the US to change the T-MEC

The Business Coordinating Council (CCE) of Mexico warned Monday that there are "extreme" demands from the United States to amend the trade agreement with Mexico and Canada (T-MEC) that are "totally unacceptable."

In a statement, the main interlocution body of Mexican businessmen indicated that in its ongoing dialogue with Mexican negotiators of the T-MEC, it has learned that the United States Government recently presented proposals for amendment of the agreement.

"We welcome changes that would strengthen the agreement, such as the solution to the old problem of the establishment of panels within the framework of the State-State dispute resolution mechanism. However, we note with great concern that there are some demands, in labor matters , which are extreme and totally unacceptable, "the CCE said.

He added that these demands "could severely affect the competitiveness of Mexico and its partners in North America."

He said that these proposals are intended, from isolated events, to affect the supply chains created in the region in the last 25 years. "If they materialize, the losers would be the people of Mexico, the United States and Canada, the economy of the region and the cooperation between the three countries," he said.

He said the corporate leadership has the perception "that some American actors are trying to push for an agreement."

"The respect for the sovereignty of Mexico is not negotiable. The Mexican Government will have our support to generate counter proposals and maintain a firm position in defense of the competitiveness of our country," said the CCE.

He added that he will continue to "strongly support the efforts of the Government, and work from our office in Washington to sensitize US actors."

The US ambassador to Mexico, Christopher Landau, pointed last Sunday to the possibility that the renewed North American trade agreement will undergo some "changes" for ratification by the United States House of Representatives.

"It is a negotiating process between the Executive Branch and the United States Legislative. I suppose it is possible that there are changes and I believe that Mexico and Canada are awaiting the changes that have been requested," Landau said in a talk at the International Fair of the Book (FIL) of Guadalajara.

The ambassador admitted that this process "is complicated", given that the Mexican Congress has already ratified the treaty and there should be "acceptance of the changes by the three countries", although he did not specify what kind of changes.

On November 30, 2018, the Governments of Mexico – then chaired by Enrique Peña Nieto -, the United States and Canada concluded the negotiation of the T-MEC, which should replace the current North American Free Trade Agreement (NAFTA), in effective since 1994, once ratified by the legislatures of the three countries.

. (tagsToTranslate) Mexican (t) businessmen (t) reject (t) US (t) T-MEC

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