Mexico says first T-MEC annual review is 'very advanced,' expresses optimism

Mexican President Claudia Sheinbaum announced that the first annual review of the North American trade agreement, known as T-MEC, is progressing well, expressing optimism about reaching a consensus. "Our vision is that the first review will be very decisive and we are already very advanced. It's not that the conversations are starting now, but we have already had quite a bit of progress. So, we are optimistic about the T-MEC," Sheinbaum stated during a press conference in Morelia, the capital of Michoacán state.

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Our vision is that the first review will be very decisive and we are already very advanced. It's not that the conversations are starting now, but we have already had quite a bit of progress. So, we are optimistic about the T-MEC.

She conveyed this positive outlook to business leaders involved in the IMMEX program (Manufacturing, Maquiladora, and Export Services Industry), whom she met with the previous day. The meeting included Economy Secretary Marcelo Ebrard and other key officials. Despite uncertainty stemming from Washington's hesitation to extend the T-MEC beyond its current term, Sheinbaum emphasized that there is "certainty" for investment in Mexico, as the treaty remains valid until at least 2036. "I want to tell all entrepreneurs, small, medium, large, national and foreign, that there is certainty for investing in Mexico and that the treaty remains. And there is a good commercial relationship with the U.S. government," she asserted.

Addressing Mexico's trade position, Sheinbaum firmly refuted claims that the country negotiated poorly with Washington. She argued that Canada, also a T-MEC partner, is currently in a more disadvantageous position than Mexico. "It is a vision of the United States government of greater protectionism. The treaty remains for 10 years, and in those 10 years, the decision can be made to extend it for another 16 more," she added, referring to the agreement's provisions for potential extensions.

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I want to tell all entrepreneurs, small, medium, large, national and foreign, that there is certainty for investing in Mexico and that the treaty remains. And there is a good commercial relationship with the U.S. government.

The T-MEC, which replaced NAFTA, came into effect on July 1, 2020. While the United States has not committed to an extension beyond 2036, the agreement allows the three North American partners to agree on a 16-year extension at any time if they resolve the differences that prompt the annual reviews. Former U.S. President Donald Trump had previously expressed doubts about extending the agreement, stating the U.S. "doesn't need anything" from its North American partners.

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It is a vision of the United States government of greater protectionism. The treaty remains for 10 years, and in those 10 years, the decision can be made to extend it for another 16 more.