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Home FEATURED

Renegotiation of USMCA in a protectionist environment: Ebrard; offers Canacar a seat in the Ministry of Economy

The stance of U.S. candidates and the U.S.-China trade war are factors to consider.

T21 Media by T21 Media
30 September, 2024
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CANCÚN, Q. ROO. – The next head of the Ministry of Economy (SE) , Marcelo Ebrard, who will take office on October 1, was one of the most talked about panelists in the hallways and groups of businessmen who participated in the National Convention of the National Chamber of Cargo Transportation (Canacar) .

In a presentation to the members of Canacar lasting no more than 30 minutes, the next head of the SE outlined the scenario that will take place in the renegotiation of the Treaty between Mexico, the United States and Canada (T-MEC), the opportunities that exist in foreign trade and also left a message of closeness with this community by committing a place within the federal agency  to be living the day of this economic activity.

Ebrard shared that the renegotiation of the T-MEC will begin with consultations during the second half of 2025, however, unlike in 2018, there is now an environment of protectionism that will have to be dealt with, not only because of the attitude of the Republican candidate Donald Trump , but also because of the Democratic candidate Kamala Harris, who at the time voted against this agreement .

“We are facing a trade war between China and the United States,” explained the former foreign minister in the administration of Andrés Manuel López Obrador.

Ebrard highlighted that on October 15 they will begin the “CEO Dialogue” with which they will approach businessmen who are immersed in the commercial exchange between Mexico and the United States, and where they seek to explore the areas to maintain sustained growth.

Source: Ministry of Economy 2024-2030.

Mexico and the United States have one of the strongest trade relations , with Mexico being the largest exporter to its northern neighbor, but also the largest importer.

In the cumulative total through July 2024, Mexico’s exports to the United States totaled 290,981.3 million dollars (mdd), while in the opposite direction they total 195,053.3 million dollars, according to data from Census.gov.

Source: Ministry of Economy 2024-2030.

Marcelo Ebrard stressed that beyond the net value, the percentage of exports with domestic added value from the origin of the production chain must be increased and that since 1993 it has remained below 20 percent. “It has to be double, it is a huge effort, but it will increase the value of our economy and therefore the salary and standard of living.”

To increase the added value of the economy, the next official of Claudia Sheinbaum’s administration acknowledged that it is necessary to work closely with companies to build the agenda every day, and in the case of auto transport, issues such as fleet renewal , improving competitiveness with the United States or what is being faced in terms of insecurity on the roads must be addressed .

“We need daily information on what is happening and to react in time together with the Ministry of Security and the competent authorities, but having greater security has to do with the economy,” Ebrard explained.

To address these issues, Marcelo Ebrard promised business leaders in the sector to provide a permanent seat in the Ministry of Economy, so that the challenges facing the auto transport sector that limit economic growth can be communicated on a daily basis .

Marcelo Ebrard.

In its analysis, the Ministry of Economy will be able to coordinate with other departments in order to address the aforementioned issues such as security or fleet renewal.

The age of the cargo transportation fleet reaches at least an average of 20 years old and, in Marcelo Ebrard’s perspective, this reduces competitiveness compared to commercial partners.

Comment and follow us on X: @DidierRT / @GrupoT21

Tags: CanacarMarcelo EbrardMinistry of EconomyTRADE WARUSMCA

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