Mexico doing all it could possibly to guard commerce settlement with US, Canada, official says

By Kylie Madry

MEXICO CITY (Reuters) -Mexico is doing every part it could possibly to guard a regional commerce settlement with the U.S. and Canada, the Latin American nation’s deputy financial system minister mentioned in an interview revealed on Friday.

The three neighboring nations, and main companions in commerce, have entered a commerce tussle after U.S. President-elect Donald Trump threatened to slap tariffs on the international locations to the north and the south if they didn’t clamp down on medicine and migrants coming into the U.S.

Mexico is engaged on each points with a view to “come to the desk” to barter with out obstacles, Luis Rosendo Gutierrez instructed outlet Inside U.S. Commerce.

Since Trump’s tariff risk, Mexico has launched an offense on contraband items from Asia coming into the nation, and officers seized a file quantity of fentanyl. They’ve additionally detained 1000’s of migrants, vowing to forestall them from making it north.

In an announcement issued late Friday, U.S. President Joe Biden thanked Mexican President Claudia Sheinbaum and the nation’s army and legislation enforcement officers for seizing over twenty million doses of illicit fentanyl.

Mexican officers have been in contact with Trump allies, Gutierrez added, although they haven’t met with incoming administration officers. The exception is Jamieson Greer, Trump’s tapped commerce consultant, with whom Gutierrez met earlier than his nomination.

Trump, in addition to some U.S. business leaders, have accused Mexico of being a “backdoor” to Chinese language items and funding, which Mexico has denied.

SCREENING INVESTMENTS

Mexico is seeking to take a cue from the U.S., nevertheless, in screening investments coming into the nation, Gutierrez mentioned. Mexico is seeking to develop a course of much like the U.S.’ Committee on Overseas Funding, he defined.

When requested if that may have an effect on Chinese language automaker BYD (SZ:002594)’s plans to construct a manufacturing facility within the Latin American nation, Gutierrez responded that Mexico needs “to play with the identical guidelines” as its commerce allies.

Trump had threatened to place a 100% tariff “on each single automotive coming throughout the Mexican border” in response to BYD’s plans, although the carmaker has repeatedly mentioned its plant would serve the native market and never the US.

Mexico is contemplating doling out incentives to attract manufacturing investments, Gutierrez mentioned, suggesting Mexico may produce batteries that the U.S. needs to be made regionally.

CORN COMPLICATIONS

Mexico can be awaiting the results of a dispute panel beneath the USMCA commerce deal relating to Mexico’s restrictions on imports of genetically-modified corn.

Mexico will adjust to the panel’s ruling even when unfavorable towards the nation, Gutierrez mentioned. And relying on the end result, Mexico will weigh whether or not it should make adjustments to a proposed constitutional reform that may bar using GM corn for human consumption, the official added.