Background on Jamieson Greer and the T-MEC
Jamieson Greer, the United States Trade Representative (USTR), recently expressed concerns about Mexico’s adherence to certain aspects of the USMCA (United States-Mexico-Canada Agreement) during a conversation at the Economic Club of New York. Greer highlighted that Mexico has not been fulfilling its commitments in the energy, telecommunications, and agricultural sectors. He emphasized that it doesn’t make sense to consider extending the trade agreement if Mexico is not meeting its obligations in crucial parts of it.
Key Points from Greer’s Statements
- US-Mexico Trade Discrepancies: Greer mentioned that the US is having conversations with Mexico to improve their compliance with the T-MEC, particularly in energy, telecommunications, and agriculture. He stated that they are being discreet about these discussions.
- US-Canada vs. US-Mexico Relationships: Greer explained that the relationship with Canada differs from that of Mexico. He noted that while there are trilateral issues, many conversations will be bilateral with each country.
- Fair Trade Vision: Greer emphasized the importance of ensuring that free trade agreements are also fair, offering benefits to US workers and the middle class while avoiding imbalances with trading partners like China.
- Manufacturing Relaunch in the US: Greer pointed out that manufacturing in the United States has fallen to around 10-11% of GDP, much lower than in developed countries with manufacturing traditions like Japan and Germany (around 16%). The goal is to increase this percentage by the end of the current administration.
- Security Implications: Greer stressed that the revival of US manufacturing has economic and commercial logic, but also national security implications. The COVID-19 pandemic exposed vulnerabilities in supply chains for critical items like semiconductors and pharmaceuticals, necessitating a “reshoring” strategy to produce these items domestically or nearshore.
- China Negotiations: Greer compared current negotiations with China to those of the past decade, noting that today’s Chinese negotiators focus more on non-economic aspects like politics and geopolitics. He described the current state of affairs as undesirable, citing issues like China’s restrictions on rare earth mineral exports and the US imposing tariffs (averaging 55%) in response.
Key Questions and Answers
- Question: What are the main areas where Mexico is not complying with the T-MEC, according to Greer?
- Answer: Mexico is not fulfilling its commitments in energy, telecommunications, and agriculture sectors.
- Question: How does Greer view the US relationships with Canada and Mexico?
- Answer: Greer explained that the US-Canada relationship differs from the US-Mexico relationship, with many conversations being bilateral rather than trilateral.
- Question: What is Greer’s vision for free trade agreements?
- Answer: Greer wants to ensure that free trade agreements are also fair, offering benefits to US workers and the middle class while avoiding imbalances with trading partners like China.
- Question: What are Greer’s goals for the relaunch of US manufacturing?
- Answer: Greer aims to increase the manufacturing sector’s contribution to US GDP from around 10-11% to a level closer to 16%, similar to countries like Japan and Germany.
- Question: How does Greer see the national security implications of reviving US manufacturing?
- Answer: Greer emphasized that reviving US manufacturing has national security implications, as the COVID-19 pandemic exposed vulnerabilities in supply chains for critical items like semiconductors and pharmaceuticals.
- Question: How do Greer’s views on China negotiations differ from those of the past decade?
- Answer: Greer noted that today’s Chinese negotiators focus more on non-economic aspects like politics and geopolitics, unlike the more economically focused negotiations of the past decade.
