The T-MEC, "economic trigger" for North America

Mexico, Dec 10 (EFECOM) .- The new version of the treaty between Mexico, the United States and Canada, the T-MEC, which is expected to be ratified by the congresses of the three countries in the coming days, will be an "economic trigger" for North America and a mechanism that will allow the Latin American country to attract more investment, several experts said Tuesday.

"It is positive news for the three countries," said Eduardo Osuna, vice president and CEO of BBVA Mexico. "It dissipates uncertainty and will make it easier to continue building value chains in North America that will help make the Mexican economy more solid and productive," he added.

He recalled that private investment in Mexico has been stagnant since 2016, when uncertainty began regarding the future of the commercial relationship with the United States and Canada.

"It will be an economic trigger for everyone, as investors operated with some caution while waiting for the definition of the treaty," he said.

The United States Chamber of Commerce (AmCham) in Mexico said that "continuous cooperation between private initiative and governments" has characterized the negotiation process of the trade agreement, and that was what allowed negotiators to sign a Protocol this day. Modification in Mexico City.

The agency said that the firm "is an unequivocal signal of the value of trade integration, collaboration and competitiveness of North America, particularly between Mexico and the United States, as the main trading partners."

Adriana Ibarra, a member of the Foreign Trade Group of the legal services firm Baker McKenzie, Mexico, said the agreement reached "gives certainty that, in the very near future, we will have a new treaty that will govern trade relations between Mexico, States United and Canada. "

He said that although the North American Free Trade Agreement (NAFTA, in force since 1994) is still in force, "it was essential for the productive sector to determine what the rules of the game will be to plan their supply chains and productive processes in the region".

Peter Mackay, a partner in the Foreign Trade group of Baker McKenzie, Canada, and former Foreign Minister, said that in Canada the ratification of the agreement by Parliament "is almost assured, even with its recently reduced minority mandate."

"The elimination of uncertainty around the treaty would be a great victory for the economies of the three countries in the face of growing speculation about a possible recession," he said.

Representatives of the Governments of Mexico, the United States and Canada signed this Tuesday in the Mexican capital the new version of the T-MEC, which includes the modifications agreed between the White House and the US legislators of the Democratic Party.

Before signing in the National Palace, the president of the House of Representatives of the United States, Nancy Pelosi, who kept the ratification process blocked, gave her support to the new version of the treaty and opened the door for it to be approved by the Chamber before December 20, when the Christmas break begins.

As a presidential candidate and upon arriving at the White House in 2017, Donald Trump strongly criticized NAFTA, which resulted in more than a year of negotiations until the three countries signed the T-MEC on November 30, 2018 in Buenos Aires.