Introduction to the Mexican Business Council and its Role in International Negotiations
The Mexican Business Council for External Trade, Investment and Technology (Comce) announced that the “Cuarto de Junto,” also known as the Strategic Advisory Council for International Negotiations (CCENI), will actively participate in the review of the United States-Mexico-Canada Agreement (USMCA).
Understanding the USMCA Review Process
The USMCA includes a six-year review process, which does not imply renegotiation. However, the trade policies of U.S. President Donald Trump have pressured several countries to establish parallel trade agreements to reduce or eliminate tariffs.
- The Mexican government is engaged in a 90-day negotiation process to eliminate over 50 non-tariff barriers that the Trump administration has demanded to remove the 25% tariffs imposed by U.S. customs on Mexican products that do not comply with the USMCA’s rules of origin.
- These tariffs were initially imposed by Trump, citing insufficient support from Mexico and Canada in addressing U.S. immigration and drug trafficking issues.
Mexico’s Preparations for the USMCA Review
Marcelo Ebrard, Mexico’s Secretary of Economy, has stated that as trade tensions between Mexico and the U.S. continue, the USMCA review process will become more feasible.
Comce highlighted that its International Section for North America, led by Juan Pablo Cervantes, Kenneth Smith Ramos, Armando Ortega, and Antonio Ortiz-Mena, will contribute their expertise to support the Mexican government in constructing proposals that strengthen regional competitiveness and ensure the agreement’s continuity for Mexico’s benefit.
The Role of the “Cuarto de Junto” in International Negotiations
The “Cuarto de Junto” typically holds meetings in nearby hotels, Mexican embassies, or the Secretary of Economy’s headquarters while government representatives conduct negotiations.
“Mexican businesses have a significant opportunity to position ‘Made in Mexico’ as a strategic factor within regional integration, contributing quality and regional content to the trilateral value chains,” said Sergio Contreras, Comce’s executive president.
Key Questions and Answers
- What is the “Cuarto de Junto”? The “Cuarto de Junto” is a consultation and support mechanism for the Mexican government in international trade negotiations, involving private sector representatives.
- What is the USMCA? The USMCA is a trade agreement between Mexico, the United States, and Canada that replaced the North American Free Trade Agreement (NAFTA) in 2020.
- Why is there a review process for the USMCA? The six-year review process allows for adjustments to the agreement without full renegotiation, addressing concerns like non-tariff barriers and tariff impositions.
- Who are the key figures involved in the USMCA review? Marcelo Ebrard, Mexico’s Secretary of Economy; Juan Pablo Cervantes, Kenneth Smith Ramos, Armando Ortega, and Antonio Ortiz-Mena from Comce’s International Section for North America; and Sergio Contreras, Comce’s executive president.
