T-MEC negotiations enter key stage, Mexico tells Congress

Mexico's government has informed Congress that negotiations over the Mexico-United States-Canada Agreement (T-MEC) have reached a critical phase. The number of outstanding issues has significantly decreased from 54 to 14.

A new round of working meetings is set for July 20, aiming to advance discussions on the remaining topics. The Ministry of Economy stated that this bilateral meeting will focus on defining the path forward, addressing prioritized concerns from both nations, and reporting on progress.

U.S. concerns primarily revolve around the loss of manufacturing jobs, reliance on supply chains from third countries, the trade deficit, rules of origin, and economic security. However, Mexico's government proposes a regional strategy to bolster North American production and lessen dependence on Asian imports.

Mexico has presented 13 points of its own, including the elimination of U.S. Section 232 tariffs on strategic industries like steel, aluminum, and automotive sectors. The administration aims to remove these tariffs to enhance regional competitiveness and investment certainty. Mexico also plans to promote investments in strategic sectors such as semiconductors, pharmaceuticals, and electronics to increase North American production capacity and reduce critical import dependencies.