64 frequently asked questions about the USMCA: from 19 to 21

Redacción Opportimes 16 julio, 2020

Exports by rail transport between Mexico and the United States registered a 26.2% year-on-year drop in the first half of the current year, to $ 30.07 billion. — Photo: KCS.

The Ministry of Economy published a list of 64 frequently asked questions about the Treaty between Mexico, the United States and Canada (USMCA).

The USMCA includes Annex 14-e Mexico-United States investment dispute resolution related to covered government contracts.

Specifically, the USMCA states that a “covered government contract” means a written agreement between a national authority in one Annex Party and a covered investment or an investor in the other Annex Party, in which the covered investment or the investor relies on establishing or acquiring a covered investment other than the written agreement as such, which grants rights to the covered investment or to the investor in a covered sector.

Also, the “covered sector” means:

Activities with respect to oil and natural gas that a national authority of an Annex Party controls, such as exploration, extraction, refining, transportation, distribution or sale.

Supply of power generation services to the public on behalf of an Annex Party.

Provision of telecommunication services to the public on behalf of an Annex Party.

Provision of transportation services to the public on behalf of an Annex Party, or (v) the ownership or administration of roads, railways, bridges or channels, other than for the exclusive or predominant use and benefit of the government of a Party to the Annex. Annexed.

These are questions 19 to 21 about the USMCA, answered by the Ministry of the Economy:

What benefits does Chapter 13 of Public Procurement grant for Mexico in the USMCA?

Greater opportunity for the participation of Mexican suppliers in the procurement of goods, services and public works, thus promoting national suppliers in strategic sectors.
Access of the Mexican industry to the United States public procurement market, which can only be accessed by foreign suppliers through a trade agreement.

What updates do we find in Chapter 14 Investment in the USMCA?

The Chapter updated the NAFTA disciplines on the protection of investors in North America and outlined the mechanisms by which foreign investors will be able to resolve differences that may arise from the alleged violation of the provisions of the Treaty. Strengthens the environment of certainty for investment in the region.
It is important to highlight that the disciplines of liberalization and investment protection envisaged are the result of a review and update of the standards envisaged by NAFTA, in order to improve and clarify its scope. The negotiation of this Chapter benefited greatly from the experience that the Parties have acquired in dealing with the investor-State dispute settlement mechanisms that they have faced.