Introduction to the T-MEC and Current Situation
Marcelo Ebrard, Mexico’s Secretary of Economy, aims to resolve the United States’ concerns regarding non-tariff barriers in Mexico before formally initiating the review of the Tratado entre México, Estados Unidos y Canadá (T-MEC). This comes after a 90-day pause agreed upon by Mexico’s President Claudia Sheinbaum and U.S. President Donald Trump to halt the increase of tariffs on Mexican imports that do not comply with T-MEC standards from 25% to 30%. Trump expects Mexico to immediately end its non-tariff trade barriers.
Details of US Concerns and Mexico’s Response
Although neither government has specified the non-tariff barriers Trump refers to, Ebrard mentioned around “fifty-and-some” such barriers not related to tariffs during an interview with Ciro Gómez Leyva’s “Programa Por la Mañana.” These include concerns about new regulatory bodies like the anti-monopoly commission, intellectual property actions, and duration of procedures. Mexico also has a list of trade-related requests, both tariff and non-tariff.
Currently, U.S. customs apply tariffs of 35% to Canada and 25% to Mexico on products not complying with the T-MEC, aiming to pressure greater cooperation on fentanyl and migration. Tariffs of 25% are imposed on light vehicles to both countries (excluding U.S. content), and 50% on steel, aluminum, and copper to both nations.
Timeline for Addressing Concerns and T-MEC Review
Ebrard stated that Mexico and the U.S. will start consultations in October, November, and early December to prepare for the T-MEC review. The goal is to have each country’s and sector’s assessment of their experience with the T-MEC and proposed revisions ready for discussion. The formal review will commence in January, concluding on July 1, 2026.
Expert Opinion on the Matter
Kenneth Smith, an international trade specialist and AGON partner, expressed concern that the Trump administration has not yet acted on Mexico’s efforts to remove migration and security-related tariffs. He fears that the U.S. might insist on keeping existing tariffs and using them as a starting point for T-MEC discussions, rather than free trade.
Key Questions and Answers
- What are the US concerns regarding Mexican trade barriers? The U.S. is concerned about non-tariff barriers in Mexico, including new regulatory bodies, intellectual property actions, and procedural duration.
- When will these concerns be addressed? Mexico and the U.S. plan to address these issues through consultations in October, November, and December 2023, with the formal T-MEC review beginning in January 2024.
- What is the timeline for T-MEC review? The T-MEC review will conclude on July 1, 2026.
- What is the expert opinion on the situation? Kenneth Smith, an international trade specialist, is concerned that the U.S. might insist on keeping existing tariffs as a starting point for T-MEC discussions, rather than focusing on free trade.
