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Official: Mexico considering USMCA ‘as it is’

Undersecretary said her government is “not considering anything” other than the agreement as it is written, amid calls from some Democrats to renegotiate certain parts.

   Mexican Under Secretary for Foreign Trade Luz Maria de la Mora on Friday expressed opposition to the notion of renegotiating parts of the U.S.-Mexico-Canada Agreement (USMCA), which several Democrat lawmakers have called for as Congress awaits submission of implementing legislation.
   “We are considering this agreement as it is. We are not considering anything else,” de la Mora said during an event at the Wilson Center in Washington, D.C. “I think that the USTR or the U.S. administration will have to explain what’s in there and how this agreement responds to their concerns, which is exactly what we’re doing” with Mexican Congress.
   Though USMCA brings NAFTA labor and environmental provisions into the core text, making them legally enforceable, Democrats have expressed concern about whether such provisions will be enforceable in practice.          Democrats also have expressed concern about a provision that would provide a 10-year exclusivity period for test data to be utilized in development of biologic medicines.
   The 10-year test period is longer than the maximum eight-year period provided in the Trans-Pacific Partnership but shorter than the 12-year timeline provided in U.S. law.
   Kenneth Smith Ramos, who led Mexico’s USMCA negotiations for the administration of former President Enrique Pena Nieto, last month said reopening talks could risk unraveling the entire agreement prior to implementation and noted that while some Democrats have voiced concerns with the labor chapter, that language is more advanced than any other free trade agreement’s labor chapter.
   Mexico currently is considering labor reform legislation, in line with USMCA, de la Mora said.
   She also noted that U.S. Section 232 steel and aluminum tariffs “need to be solved soon.” While there is a global steel overcapacity issue, Mexico isn’t part of the problem and runs a trade deficit with the U.S. in steel, de la Mora said.        Customs and Border Protection mechanisms to monitor and combat transshipment could be a potential solution, she said.
   Mexico is considering changing its mix of U.S. products targeted in ongoing retaliation for U.S. steel and aluminum tariffs, de la Mora said. Those products will likely include new agricultural and industrial products, she said.
   “Some of them will remain — but yes — we’re in the process of assessing that, and you can expect to see something new in the next couple of months,” de la Mora said.

Brian Bradley

Based in Washington, D.C., Brian covers international trade policy for American Shipper and FreightWaves. In the past, he covered nuclear defense, environmental cleanup, crime, sports, and trade at various industry and local publications.