Mexico, US Target 'Parasitic' Trade Practices, Boost Regional Supply Chains Under T-MEC

Mexico and the United States are intensifying efforts to bolster their economic relationship, focusing on reinforcing regional supply chains and promoting North American manufacturing. A key objective is to address what they term "parasitism" by countries that seek to gain T-MEC benefits without fulfilling partnership obligations.

During the third round of bilateral negotiations for the T-MEC review, U.S. Trade Representative Jamieson Greer met with Mexico's President-elect Claudia Sheinbaum. They agreed on the "urgency of boosting North American manufacturing, reinforcing regional supply chains, and confronting the parasitism of non-signatory countries."

Greer also held discussions with Mexico's Secretary of Economy, Marcelo Ebrard. Both sides highlighted their ongoing "constructive collaboration" between the U.S. Trade Representative's Office (USTR) and the Secretariat of Economy. The negotiations covered various issues, including economic security, labor, agriculture, electronic payment services, steel, aluminum, and automotive sectors.

The teams from both countries have scheduled the fourth round of negotiations for September in Washington, D.C. Additionally, a group of U.S. business leaders met with their Mexican counterparts and government officials during the negotiations. The USTR announced new tariffs of 10% on goods from countries with forced labor or inefficient law enforcement, noting that approximately 85% of Mexican exports to the U.S. will maintain zero-tariff status under T-MEC rules, as one tariff measure replaces another.