Understanding the Context and Key Players
On July 19, the US Department of Transportation (DOT) announced a series of measures concerning cross-border air transportation between Mexico and the United States, including passenger or cargo services as well as the partnership between Aeroméxico and Delta Airlines, previously approved for antitrust immunity.
US Concerns Regarding Mexican Market Alterations
The DOT’s communication highlights that since 2022, Mexico has significantly altered the competitive landscape for airlines, reducing competition and providing an unfair advantage to dominant players in the Mexico-US market. This issue will likely prompt Mexico’s government to structure its argument, potentially revealing their support for Mexicana de Aviación, a company they partly own.
Mexicana de Aviación’s Absence from DOT Measures
Interestingly, Mexicana de Aviación is not listed among the airlines affected by the new DOT measures, possibly because it currently does not operate in the US market. However, it’s evident that their government-backed venture to enter the cross-border air transportation market, promised for this year, will not materialize by 2025.
DOT Measures as a Precursor to T-MEC Review Complications
The DOT’s announcement should also be viewed as a warning from the US government that they will continue to complicate dialogue with Mexico regarding the upcoming T-MEC review in 2023, as previously mentioned by the White House concerning discriminatory treatment of private companies, including US firms, in Mexico’s energy sector.
Agricultural Sector Involvement in US-Mexico Relations
In this context, recent measures against tomato and cattle exports due to dumping allegations also demonstrate that the agricultural sector is part of the US strategy to complicate relations with Mexico.
Telecommunications Sector and Potential Future Complaints
Furthermore, the newly favorable environment for Mexico’s government-owned telecommunications companies, CFE Telecom and Altán Redes (essentially state-owned), resulting from the recently approved legal framework, may lead to future complaints from the Trump administration. This is due to the uneven playing field created for state-owned enterprises compared to private operators, some of which have US investments like AT&T and StarLink.
Navigating the Complex Path Ahead for Marcelo Ebrard
Marcelo Ebrard, Mexico’s Secretary of Foreign Relations, faces an increasingly intricate negotiation route with various US government departments. This complexity might have been underestimated by Ebrard and President Claudia Sheinbaum at the beginning of 2021. To counteract the distorted sentiments from President Trump’s government, Sheinbaum should signal her support for Mexican officials working to maintain stable relations.
Key Questions and Answers
- What are the US concerns regarding Mexico’s airline market? The US is concerned that Mexico has significantly altered the competitive landscape for airlines since 2022, reducing competition and providing an unfair advantage to dominant players in the Mexico-US market.
- Why is Mexicana de Aviación not mentioned in the DOT’s measures? Mexicana de Aviación is likely absent from the list because it does not currently operate in the US market. The government-backed venture for cross-border air transportation is unlikely to materialize by 2025.
- How do the DOT measures relate to the T-MEC review? The DOT’s announcement serves as a warning that the US government will continue to complicate dialogue with Mexico regarding the upcoming T-MEC review in 2023, as previously indicated by concerns over discriminatory treatment of private companies, including US firms, in Mexico’s energy sector.
- Which other sectors are involved in US-Mexico relations complications? The agricultural sector, specifically tomato and cattle exports, is part of the US strategy to complicate relations with Mexico. Additionally, the telecommunications sector may face future complaints due to a more favorable environment for state-owned enterprises compared to private operators with US investments.
- What challenges does Marcelo Ebrard face in negotiating with the US? Marcelo Ebrard, Mexico’s Secretary of Foreign Relations, faces an increasingly complex negotiation route with various US government departments. President Claudia Sheinbaum should support Mexican officials working to maintain stable relations to counteract distorted sentiments from President Trump’s government.
