Background on Key Figures
Claudia Sheinbaum is the President of Mexico, elected in 2018. She has a background in science and environmental issues, having served as the Head of the Mexico City Government’s Secretariat of Environmental Evaluation and Control (SEDEMA) from 2012 to 2018. Mark Carney, on the other hand, is the current Prime Minister of Canada, taking office in August 2019 after serving as Governor of the Bank of England from 2013 to 2019. Carney has extensive experience in managing financial crises, including his role as the Governor of the Bank of Canada during the 2008 financial crisis.
Telephone Conversation Details
According to the Mexican government, President Sheinbaum and Prime Minister Carney had a telephone conversation on Thursday to discuss the importance of the North American Trade Agreement (T-MEC) in strengthening regional competitiveness. They also addressed the continuity and enhancement of the Seasonal Agricultural Workers Program.
Contextualizing the T-MEC
The T-MEC, which replaced the North American Free Trade Agreement (NAFTA) in 2020, has faced scrutiny due to U.S. President Donald Trump’s threats of tariffs. Despite initial concerns, the U.S. government announced in April that Canadian and Mexican goods meeting T-MEC origin standards would be tariff-free, while certain sectors like automotive and steel/aluminum remain under negotiation.
Article 34.7 of the T-MEC
Article 34.7 of the T-MEC mandates an evaluation of the trade agreement’s operation, proposing actions for review and outlining each country’s stance on extending the agreement’s term. The parties agreed to review the agreement six years after its entry into force. If all parties wish to continue, it remains in effect for another 16 years; annual joint reviews occur if a party does not confirm their desire to extend the agreement term.
Key Questions and Answers
- Who are Claudia Sheinbaum and Mark Carney? Claudia Sheinbaum is the President of Mexico, while Mark Carney is the Prime Minister of Canada.
- What was the main topic of their conversation? The primary subject of discussion was the T-MEC and its significance in enhancing regional competitiveness.
- What is the Seasonal Agricultural Workers Program? It’s a program that facilitates temporary agricultural labor in Mexico, Canada, and the United States.
- What are the concerns surrounding the T-MEC? Initial worries included U.S. President Donald Trump’s tariff threats, although the U.S. later agreed to tariff-free goods meeting T-MEC origin standards.
- What does Article 34.7 of the T-MEC entail? It requires an evaluation of the trade agreement’s operation, proposing actions for review and outlining each country’s stance on extending the agreement’s term.
