Background on Marcelo Ebrard and His Role
Marcelo Ebrard is the Secretary of Foreign Affairs in Mexico, a position he has held since 2018. As the head of Mexico’s foreign policy, Ebrard plays a crucial role in shaping the country’s international relations and trade agreements. His recent statements on proposed tariffs highlight his commitment to addressing Mexico’s growing trade deficit with Asia.
Understanding the Trade Deficit and Proposed Tariffs
Trade Deficit with Asia:
Mexico has experienced an 83% increase in its trade deficit with Asia from 2020 to 2024. This growing imbalance stems from Mexico’s import of goods priced below the reference price, allowing competitive market entry for foreign companies. This situation negatively impacts Mexico’s domestic production capabilities.
Proposed Tariffs:
To counteract this deficit, Mexico plans to impose tariffs on 1,463 product classifications across 17 strategic sectors. These tariffs aim to protect Mexican industries from cheap imports and are subject to approval by the Union Congress. The tariffs will affect $52 billion worth of imports (8.6% of total foreign purchases) and are part of Mexico’s Program for Protection of Strategic Industries.
Sector-wise Tariff Adjustments
- Automotive: Tariffs increase from 15-20% to 50%
- Textile, Clothing: Tariffs rise from 0-35% to 10-50%
- Plastics: Tariffs go from 0-35% to 10-50%
- Steel: Tariffs increase from 0-35% to 10-50%
- Home Appliances: Tariffs rise from 0-35% to 10-50%
- Aluminum: Tariffs go from 0-35% to 10-50%
- Toys: Tariffs increase from 0-35% to 10-50%
- Furniture: Tariffs rise from 0-35% to 10-50%
- Footwear: Tariffs go from 0-35% to 10-50%
- Leather Goods: Tariffs increase from 0-35% to 10-50%
- Paper and Cardboard: Tariffs rise from 0-35% to 10-50%
- Motorcycles: Tariffs go from 0-35% to 10-50%
- Trailers: Tariffs increase from 0-35% to 10-50%
- Glass: Tariffs rise from 0-35% to 10-50%
Ebrard’s Stance on Retaliation and T-MEC Review
No Expectation of Retaliation:
Ebrard dismissed any anticipation of retaliation from affected countries, emphasizing Mexico’s open and favorable trade policy. He pointed out that Mexico faces higher tariffs from countries without existing trade agreements.
T-MEC Review Process:
Ebrard plans to meet with state governors and economic development secretaries to gather insights on revising the T-MEC (Mexico-United States-Canada Agreement). This consultation will occur through each federal entity’s Investment Promotion Committee, considering their unique economic profiles.
Additional Developments: Convenio Hecho en México con Amazon
Amazon Registration Fee Waiver:
In related news, Mexico and Amazon have agreed to eliminate the $600 registration fee for small and medium-sized enterprises. This change aims to provide these businesses with a fairer opportunity to participate in the e-commerce platform.
Product Differentiation and Similar Agreements:
Amazon will now distinguish Mexican-made products from others, offering a marketing advantage to local businesses. Ebrard also mentioned that similar agreements will be signed with other e-commerce platforms, fostering a more inclusive digital marketplace.
Key Questions and Answers
- Q: What is the main reason for Mexico’s proposed tariffs?
A: The primary motivation is to reverse the 83% growth in Mexico’s trade deficit with Asia. - Q: Which sectors will be affected by these tariffs?
A: The tariffs will impact 17 strategic sectors, including automotive, textile, clothing, plastics, steel, home appliances, aluminum, toys, furniture, footwear, leather goods, paper and cardboard, motorcycles, trailers, and glass. - Q: Will there be retaliation from countries affected by the tariffs?
A: Ebrard does not anticipate retaliation, citing Mexico’s open trade policy and higher tariffs faced by countries without existing agreements. - Q: What is the purpose of the meeting with state governors and economic development secretaries?
A: Ebrard aims to gather insights on revising the T-MEC (Mexico-United States-Canada Agreement) through consultations with each federal entity’s Investment Promotion Committee. - Q: What changes has Mexico implemented regarding Amazon?
A: Mexico and Amazon have agreed to waive the $600 registration fee for small and medium-sized enterprises, enabling better market access. Additionally, Amazon will differentiate Mexican-made products from others, and similar agreements are expected with other e-commerce platforms.
