Mexico must react before possible pressure from Biden

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With the arrival of Democrat Joe Biden to the presidency of the United States, Mexico will not have to wait for pressure from Washington in labor, environmental, and energy matters, experts said.

José Luis de la Cruz, general director of the Institute for Industrial Development and Economic Growth (IDIC) commented that the government of the 46th president of the American Union will focus on the fulfillment of the commitments assumed in the Treaty Mexico, the United States, and Canada USMCA known as (T-MEC) in Mexico.

He added that the letter sent by the Finance Committee of the US Senate outlined what the country will face in the next four years, which is to make the trade pact effective, and strategic aspects and secrets such as labor in the automotive industry.

He noted that in labor matters there is support from the US industrial states such as Michigan, but he also estimated pressure in the energy sector that was not included in the North American Free Trade Agreement (NAFTA), but in the USMCA yes.

“Here in the labor part and in the industrial part there is already a clear line from Biden, it is very clear that there would be an element of pressure for Mexico,” he said.

He added that regional content should also be increased, as Biden has indicated the interest in reducing dependence on Chinese manufacturing, so Mexico has an opportunity, but it must accelerate the demand for these types of companies.

De la Cruz commented that Mexico should not wait for pressure to come from Washington, but rather move forward. So it is necessary for the Mexican government to restore institutional channels with the United States. “It is very good that there is a closeness between politicians, between the first leaders, but it gives more stability if the channels are those of diplomacy,” he said.

He added that this is important because, in the face of unforeseen changes, the relationship can remain relatively stable.

He also considered that Mexico should propose industrial development programs for North America because if Washington wants to relaunch its industry, favor the USMCA, the fundamental thing would be to institutionalize how the region can do to achieve it.

The Laboratory for Analysis in Commerce, Economy, and Business (Lacen) pointed out that the White House will promote strategies for the economy to grow by promoting its domestic market under fiscal measures and the adoption of tariff barriers, for which Biden will use the legal framework to promote a protectionist trade policy wreaking havoc on the world economy and international trade.

He stressed that although Mexico is excluded from Section 232, which determines whether imports to the American Union threaten the country’s security, Biden will use the articles of the USMCA: related to the value of automotive labor cost, energy, labor rights, environment, anti-corruption, and outsourcing, in its relationship with Mexico.

He concluded by estimating that he will pressure the government of President Andrés Manuel López Obrador in matters of migration, security, and drug trafficking.

Source: jornada.com.mx

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