Possible modifications to the Treaty between Mexico, the United States and Canada (T-MEC) could not imply substantive changes without the authorization of the US Congress. This was pointed out by specialists from the Mexican Business Council for Foreign Trade, Investment and Technology (Comce).
Implications of the changes
Kenneth Smith Ramos, president of the Mexico-United States Bilateral Technical Committee of COMCE, indicated that the White House proposals on rules of origin and other chapters of the treaty could face resistance among Democratic legislators. For this reason, he asked not to advance concessions during the negotiation until he had guarantees regarding the reduction of tariffs.
The specialist highlighted that the T-MEC is still in force and represents certainty for companies in the region. He considered it necessary for the US economic sectors to express their rejection of any measure that structurally affects the agreement.
Comce Actions
Smith Ramos stated that, although the United States maintains pressure through trade threats, the chances of it abandoning the treaty are practically zero. However, he acknowledged that annual reviews generate uncertainty for investors and companies that depend on stable rules.
Comce representatives pointed out that the continuity of the T-MEC until 2036 should be seen as a positive aspect. They warned that Mexico and Canada share dependence on the US market, so it will be necessary to strengthen the trade relationship and maintain a negotiation strategy that protects the economic integration of North America.
The annual reviews of the T-MEC generate uncertainty, but the extended validity until 2036 offers a horizon of stability if managed with a strategic approach.
