What Does the New USMCA Look Like for Mexico?
What Does the New USMCA Look Like for Mexico?
"USMCA alone cannot overcome all the hurdles to boosting investment in Mexico," writes Americas Society Board Member Ambassador Antonio O. Garza in Brink.
In August 2017, trade negotiators from the United States, Mexico and Canada met for the first time in Mexico City to begin hashing out a new North American Free Trade Agreement.
Two and a half years and many negotiations later, the U.S.-Mexico-Canada Agreement (USMCA) has finally passed both chambers of the United States’ Congress. The agreement—which overhauls North America’s trade relations—is now poised to become U.S. law and the region’s governing economic framework, as Mexico’s Congress has already passed the deal and Canada’s Parliament is expected to follow suit in late January.
While the political negotiations are wrapping up, the next and final step will be the agreement’s implementation across North America.
In the coming months and years, these new rules will shape the region’s trade realities. Some rules may unleash investment, trade and better labor conditions, but they likely won’t be without additional hurdles. In Mexico, the agreement will touch most parts of the country’s $1.15 trillion economy, but it will be felt most immediately and strongly in the overall investment climate, the automotive manufacturing sector and in labor conditions...