The US private sector considers that AMLO is violating 12 chapters of the USMCA
The Government of Andrés Manuel López Obrador would have violated or tried to violate at least 12 chapters of the new free trade agreement with the United States and Canada (USMCA), so Mexico must be forced to comply, denounced the American private sector.
In a letter addressed to the new US Trade Representative, Katherine Tai, twenty of the largest US private sector associations accused Mexico of multiple violations of chapters of the treaty that came into force in July.
“In the letter, there are many examples that explain in a very detailed way why we believe that Mexico does not comply with its obligations under the USMCA,” said Brian Pomper, the executive director of the Alliance for Trade Compliance (AFTE), who sent the message.
The 6-page letter is signed by groups like the Motion Picture Association of America (MPA) that represents Hollywood studios like Disney and Sony, to the American Petroleum Institute (API) that represents companies like Exxon, Mobil, Shell, and Bechtel.
In the complaint, the US private sector cites potential violations such as threats by President López Obrador to remove the autonomy of the Federal Telecommunications Institute (IFT) and the Federal Competition Commission (COFECE), which would violate Chapter 18 of the USMCA.
“AMLO is making a huge mistake… and if he insists, he will be committing a strategic error if he does not pay attention to this letter. Trust is rented, it is not bought, and confidence and certainty between the Mexican government and the US private initiative are about to be lost. This type of situation does not happen frequently, we are looking at a powerful business group that rarely acts in a coordinated manner,” declared an observer from the bilateral relationship that requested anonymity.
The United States expressed its concerns to Mexico over agricultural and investment issues during a bilateral meeting of the Free Trade Commission of the new North American business agreement, USMCA, the Mexican government reported on Monday.
During the meeting, the Secretary of the Economy of Mexico, Tatiana Clouthier, and the United States trade representative, Katherine Tai, discussed the rules of origin of the automotive sector, access to border trucking services, and investigations in the United States of Mexican agricultural products.
“They also discussed the progress in the labor reform in Mexico and it was agreed to strengthen collaboration in environmental and conservation matters,” added the Ministry of Economy in a statement.
The talks were held virtually between the Mexican Secretary of the Economy, Tatiana Clouthier, and her counterparts, the US Trade Representative, Katherine Tai, and Mary Ng, Minister of Small Businesses, Export Promotion, and International Trade of Canada.
In a statement, Tai’s office said that agricultural issues encompass risk-based science and regulation and biotech products in Mexico, as well as access to US potatoes.
The talks addressed trade facilitation and Mexico’s commitment to uphold workers’ rights under its labor reform, he added.
Tai also pushed for a Mexican energy policy that “respects US investment” and is in line with climate change goals.
Last week, the United States asked Mexico to examine alleged labor rights violations at a General Motors factory, a move that could lead to tariffs on some of the automaker’s most profitable vehicles under the USMCA, which went into effect. last year.
In the meeting with Minister Mary Ng of Canada and Clouthier, the importance of trilateral free trade to strengthen North America’s competitiveness and advance in the implementation of the new USMCA was discussed.
They highlighted the growing economic relationship between Canada and Mexico, and their shared interest in inclusive trade that benefits small businesses, women, indigenous peoples, and underrepresented groups in both countries.
Minister Ng reaffirmed Canada’s commitment to work closely with Mexico to address trade and investment issues, “including rules of origin for the automotive industry, and to support Mexico’s historic efforts on labor reform.”