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Mexico: U.S. 'does not want to leave' T-MEC despite rejecting extension
🇵🇾 Paraguay /Economy & Trade

Mexico: U.S. 'does not want to leave' T-MEC despite rejecting extension

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Mexico's Economy Secretary Marcelo Ebrard stated the T-MEC trade agreement remains valid until 2036, despite the U.S. refusing to extend it by another 16 years.
  • Ebrard assured that the U.S. does not intend to withdraw from the agreement, noting that any country can leave if it wishes.
  • The U.S. communicated its decision not to extend the treaty, leading to an annual review process as stipulated in the agreement.

Mexico's Economy Secretary Marcelo Ebrard asserted that the T-MEC trade agreement with the United States and Canada remains in effect until 2036, even after Washington signaled its unwillingness to extend the treaty by an additional 16 years. Ebrard stated that the U.S. "does not want to leave" the agreement, emphasizing that there are no impediments for any party wishing to withdraw.

"The treaty remains valid until 2036. We are going into an annual review process," Ebrard told reporters in Mexico City following a virtual meeting with North American trade negotiators. He added, "If the United States wanted to leave, it would have already left, there is no impediment. Therefore, it does not want to leave."

The treaty remains valid until 2036. We are going into an annual review process. If the United States wanted to leave, it would have already left, there is no impediment. Therefore, it does not want to leave.

— Marcelo EbrardMexico's Economy Secretary Marcelo Ebrard assured the continued validity of the T-MEC trade agreement despite the U.S. refusal to extend its term.

The U.S. formally communicated its decision not to extend the treaty's validity, a move Ebrard described as "no surprise." This development means the three North American partners will enter the annual review mechanism already outlined in the T-MEC. Ebrard is scheduled to meet with U.S. Trade Representative Jamieson Greer in Mexico City on July 20 to discuss these matters further.

During their virtual conversation, Greer reportedly conveyed U.S. concerns regarding the trade deficit with Mexico, a point frequently raised by former President Donald Trump. Ebrard suggested that reducing the deficit requires agreement on what goods will be produced domestically. Mexico advocates for greater coordination in North American production, though Ebrard dismissed the idea that existing differences are insurmountable. He acknowledged that "issues remain to be resolved," such as rules of origin and regional economic security, areas he hopes to advance in upcoming discussions.

The form of reducing the deficit is to agree on what we are going to stop importing.

— Marcelo EbrardEbrard responded to U.S. concerns about the trade deficit, suggesting a path toward reduction.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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