Background on American Society of Mexico (AmSoc)
The American Society of Mexico (AmSoc) represents US companies and other members of the US community in Mexico. As a prominent voice for American interests, AmSoc plays a crucial role in fostering strong trade relations between the United States and Mexico.
Key Issues Affecting US-Mexico Trade
Recently, AmSoc has highlighted the need for Mexico to address certain key issues to maintain its position as the primary commercial partner of the United States. The organization emphasizes two main areas requiring attention: strengthening the rule of law and respect for intellectual property rights.
Intellectual Property Rights
AmSoc points out that Mexico has not fulfilled its obligations regarding intellectual property protection as per the USMCA (United States-Mexico-Canada Agreement). Specifically, there has been a lack of approval for secondary legislation to implement data protection for innovative pharmaceutical and agrochemical products.
Rule of Law and Security
Larry Rubin, president of AmSoc, has urged Mexico to tackle these key issues to remain the most relevant strategic partner for the United States. He emphasized that rising crime rates, including theft from transportation companies, warehouses, and businesses, as well as the operation of criminal groups and porous borders, negatively impact bilateral trade and regional competitiveness.
Concerns Over New Investment Barriers
Octavio de la Torre, president of the Confederation of National Chambers of Commerce, Services and Tourism (Concanaco Servytur), expressed concern over new requirements and barriers imposed on US companies seeking to invest in Mexico. In a context of historic opportunities for nearshoring, these obstacles send the wrong signal and could deter long-term strategic projects.
Trump’s Threatened Tariffs
Former US President Donald Trump’s decision to impose a 30% tariff on all Mexican products imported from Mexico starting August 1st has been deemed “useless, costly, and counterproductive” by de la Torre. This measure is expected to disrupt the supply chains of both nations and create unemployment.
Impact on Bilateral Challenges
De la Torre asserts that this tariff threat does not resolve bilateral challenges but instead harms shared supply chains and puts millions of jobs at risk on both sides of the border.
AmSoc’s Recommendations for Mexico
According to AmSoc, Mexico has a significant opportunity to solidify its position as the most reliable partner for the United States. This entails taking firm action, accelerating necessary reforms, and ensuring legal certainty for those investing in the country.
Monitoring of Key Issues
“Times have changed,” says AmSoc. “Issues that once went unnoticed are now closely monitored by authorities in Washington and the US private sector.”
Key Questions and Answers
- What are the key issues AmSoc is urging Mexico to address? AmSoc emphasizes the need for Mexico to strengthen the rule of law and respect intellectual property rights, particularly in the context of the USMCA.
- Why is intellectual property protection important under the USMCA? The USMCA requires Mexico to implement data protection for innovative pharmaceutical and agrochemical products, which has not yet been achieved.
- What concerns do new investment barriers raise for US companies in Mexico? These barriers create uncertainty and could deter long-term strategic projects, hindering nearshoring opportunities.
- What are the potential consequences of Trump’s threatened tariffs on Mexican imports? The tariffs could disrupt supply chains, create unemployment, and not effectively address bilateral challenges.
- Why is Mexico’s position as a reliable US partner crucial? Ensuring legal certainty and addressing key issues will help Mexico maintain its status as the most relevant strategic partner for the United States.
