T-MEC: validity and annual reviews
The Secretary of Economy, Marcelo Ebrard, confirmed that the Treaty between Mexico, the United States and Canada (T-MEC) will remain in force until 2036. This was agreed upon by the three countries during a virtual meeting on July 1, as reported in the morning conference of President Claudia Sheinbaum.
Ebrard explained that annual reviews of the agreement will be carried out. The first formal stage will begin on July 20, when a delegation from the United States visits Mexico. The official stressed that the validity of the treaty is not under discussion, only the way to evaluate its operation.
The positions of each country
Mexico and Canada proposed extending the validity until 2042, with reviews every six years. However, the US government rejected that option. He preferred to maintain the current calendar accompanied by annual evaluations, due to his concern about the trade deficit with both nations.
“The treaty remains in force between now and 2036, as scheduled, and we will conduct an annual review,” said Ebrard.
Priority issues and Mexico’s position
During the meeting, Donald Trump’s administration expressed concern about the trade deficit. Therefore, it will seek to review specific issues of the agreement periodically. Ebrard pointed out that the Mexican government’s priority is to preserve current competitive advantages. He highlighted that more than 80% of Mexican exports to the United States do not pay tariffs.
“Mexico’s position with respect to the group of countries that trade with the United States is the best,” he stressed.
Among the issues to be addressed in the reviews are the tariffs imposed by Washington under provisions other than the T-MEC. In addition, regional production will be strengthened in strategic sectors such as the pharmaceutical industry and semiconductors. The objective is to reduce imports from other regions and contribute to reducing North America’s trade deficit.
Ebrard described the meeting as “very cordial” and trusted that the revisions will allow the agreement to be strengthened without modifying its essence or its validity until 2036.
