In one of these disputes, on Mexico‘s energy policies, the deadline for consultations was extended, and in the other, on rules of origin in the automotive industry, the ruling will be announced next November.
From the Mexican government’s perspective, Mexico has the firm intention of consolidating the USMCA as a lever for development and as an instrument to help reduce regional inequalities.
Therefore, the USMCA:
- Consolidates itself as a fundamental piece of Mexico’s trade policy, by providing legal certainty to trade operators, consumers, service providers, investors and entrepreneurs about the commitment of the three countries to advance economic integration in North America in line with the economy of the 21st Century.
- Provides greater opportunities for small entrepreneurs thanks to a better business environment as a result of new chapters such as Competitiveness, SMEs and Digital Commerce.
- It contributes to improving the standard of living of workers in the region and strengthens the position and cooperation of the three partners in favor of environmentally conscious trade.
In order to review the implementation and operation of the Agreement, the First Meeting of the Free Trade Commission (FTC) of the T-MEC was held in May 2021, which allowed to deepen the dialogue on relevant issues of the trilateral agenda related to inclusive trade, labor issues and environment.
On July 20, 2022, the United States requested consultations with Mexico under the Dispute Settlement Chapter of the T-MEC, arguing that several Mexican energy policies violate this agreement, favor Pemex and the Federal Electricity Commission (CFE), and negatively affect U.S. companies operating in Mexico and U.S.-produced energy. Canada then submitted its own request.
On the other hand, within the framework of the USMCA, on January 6, 2022, Mexico filed a request for the establishment of a dispute settlement panel related to the application and interpretation of the rules of origin in the automotive industry. The first written phase has concluded and the hearing took place on August 2 and 3, 2022. The dispute is expected to be concluded by the end of this year.