The Business Roundtable (BRT) has stated that Mexico must remove barriers to the cloud that affect financial services companies.

The BRT represents more than 200 CEOs whose companies generate one in four US jobs and nearly a quarter of the US Gross Domestic Product (GDP).

Barriers to the cloud

Mexico continues to enforce a 2021 regulation that requires electronic payment fund institutions to maintain a business continuity plan in the event of a disaster, based on: a multi-cloud approach with at least two cloud service providers in two different jurisdictions or an in-country data center that does not rely on the primary (foreign) cloud provider. 

This Mexican measure lacks prudential justification and is inconsistent with Article 17.18 of the Financial Services Chapter of the USMCA, which limits requirements for the use or location of local IT infrastructure as a condition for market access. 

Data centers

In addition, the National Banking and Securities Commission’s approval process for the use of cloud services is resource-intensive and discriminates against foreign providers, as existing local data centers must complete a shorter notification process. 

This de facto data localization requirement adds to an already complex and lengthy process that electronic payment fund institutions must undergo to obtain regulatory approval to use cloud infrastructure abroad, while local infrastructure enjoys a more streamlined process. 

Tariffs

The BRT requested that the U.S. Trade Representative (USTR) remove Section 232 and IEEPA tariffs on Mexico and Canada.

Section 232 tariffs reach 50% for steel, aluminum, and copper, while IEEPA tariffs impose rates of 25% and 35% on goods from Mexico and Canada outside the USMCA.

According to the BRT, these tariffs are counterproductive to the economy and national security. It therefore called for the restoration of preferential trade and the maintenance of the USMCA’s tariff-free structure.