A few days after the protocol amending USMCA was signed, a new controversy arose between Mexico and the USA at the weekend due to USMCA’s implementing act in the USA.
In essence, Mexican negotiator, Jesus Seade, wrote a letter stating that Mexico considered that the legislation went “beyond” the protocol since the USA was considering to include “labor inspectors” in Mexico.
In response, USTR mentioned that the USMCA’s authorized “domestic measures” such as having “Attachés”. In fact, US attachés currently operate in Mexico in different sectors or matters, such as agricultural, commerce, among others.
The existence of a maximum of 5 labor Attachés is planned, according to the USTR response and US legislation. The Attachés “will work with their Mexican counterparts, workers, and civil society groups on implementation of the Mexican labor reform, including by providing technical assistance and disbursing capacity building funds, and provide assistance to the new U.S. government interagency labor committee.”
Undersecretary Seade thanked the “clarity” of USTR’s response, considered that the Attachées will be 90% harmless and pointed out that the Attachées would abide by Mexican law.
The Modification Protocol to USMCA provides for Facility-Specific Rapid Response Labor Mechanism, which will operate independently.
Our labor expert, Rafael Alday, prepared an alert (only available in Spanish), addressing this mechanism briefly.
Under this context, it is clear that Mexico will have comprehensive monitoring of compliance with labor laws, particularly on unions and collective bargaining rights. In the same vein, Ricardo Ramírez, a former member of the WTO Appellate Body, said that never before a system so intrusive and with strict surveillance of labor legislation in another country had been established.
On Tuesday, the USMCA implementation act was approved by the Committee on Ways and Means of the House of Representatives, meanwhile, the House approved the act yesterday. Now, the Senate needs to vote on the act, but this will occur after the impeachment process that US President Donald Trump is facing according to media outlets.
The Mexican Minister of Economy mentioned in Twitter that the US Senate will vote on January 2020.
Sources:
https://www.eluniversal.com.mx/opinion/ricardo-ramirez-hernandez/t-mec-me-acabo-de-enterar
https://elfinanciero.com.mx/economia/camara-de-representantes-de-eu-ratifica-el-t-mec
This Monday, VTZ and Adrián Vázquez participated in the Mexico-China Economic and Commercial Cooperation Forum organized by the Mexican Business Council for Foreign Trade, Investment and Technology (acronym COMCE) and the Chinese Council for the Promotion of International Trade (CCPIT). Detailed information about the plenary is available here.
Sources:
Download in PDF:The Trading Room
CCCPIT, COMCE, Implementation Act, labor, labor attachés, Mexican labor Law, Mexico-China, NAFTA, Rapid Response Mechanism, Seade, USMCA, USTR
This Tuesday, December 3rd, 2019, our firm was informed that the 11th Edition of The Best Lawyers in Mexico was publicly released.
In this new edition, our partners Adrian B. Vazquez and Eduardo Zepeda Grimaldo are recognized as one of the Best Lawyers in the Trade Law practice. We note that Mr. Vázquez has received this recognition since 2008, meanwhile Mr. Zepeda since 2013.
In addition, Mr. Zepeda was simultaneously recognized as a Best Lawyer in Tax Law practice. As our clients and friends know, Mr. Zepeda advises maquiladora/IMMEX companies regarding the tax implications of their customs and business operations.
We congratulate our partners for this new recognition as leading Mexican lawyers, which adds up to the additional awards received this year, for instance, Chambers and Partners and Legal 500.
Best Lawyers, Best Mexican Lawyers, customs, IMMEX, Legal Rankings, Maquiladora, NAFTA, Tax Law, Trade Law, USMCA
(Download our PDF version of our newsletter: Trading Room)
This Tuesday US President Trump “threaten” to pull out of the WTO and called again on the WTO reform regarding the “developing-country” status during a rally in Pennsylvania. The context of the “threat” was done when President Trump mentioned that before his tenure the US was losing all their disputes at the WTO, a statement that it is not true. In his speech, he mentioned that
“China, India, many countries…they viewed them as “they’re growing”.[…] Well, they’ve grown. And they had tremendous advantages. But we’re not letting that happen anymore.[…]”
This is in line with the US Presidential memorandum dated 26 of July that requested the USTR to address this issue at the WTO, among other matters, and to inform progress in 60 days, i.e. September. If there is no substantial progress in 90 days, the USTR may stop considering a Member as a developing country as well as not support any such country’s membership in the OECD. This move targets countries like China, India, and Turkey (Mexico was also mentioned in the Presidential Memorandum); so, will there be consensus in reforming the “developing-country” status in the WTO? We consider it unlikely.
A WTO member may self-declare if it is a “developing country” since there is no definition in the WTO agreement. Being a developing country provides some additional rights than those members that are “developed”.
For instance, the “Enabling Clause”, adopted since the GATT framework, allows a WTO member to circumvent unilaterally and legally the Most Favored Nation obligation through a “Generalized System of Preferences” (GSP). A developed Member may grant preferential tariffs to certain goods from developing WTO members that they determine; in fact, the US recently removed India and Turkey from their GSP.
Another right that developing members enjoy is that they may take longer time periods for implementing agreements and commitments, a situation that occurred with the implementation of the Facilitation Trade Agreement. Mexico has self-declared itself as a developing country.
Sources:
https://www.wto.org/english/docs_e/legal_e/enabling1979_e.htm#fnt-3
This Monday was published the interview conducted by the CEO of Best Lawyers, Phillip Greer, to our managing partner, Adrián Vázquez Benítez, in the guide Best Lawyers. Adrian shared his vision on the future of international trade, especially its impact on Mexico, and we highlight the following points:
Adrián Vázquez considered that there are two problems that impact Mexico and may affect international trade these days: trade facilitation and the WTO crisis. On the one hand, our partner pointed out that Mexico was in the process of reforming and even creating a new Customs Law in order to make it compatible with the Facilitation Trade Agreement of the WTO; on the other hand, due to the paralysis on the appointment of appellate body members, the effectiveness of the dispute settlement mechanism system is at risk as well as compliance with WTO law by its members.
Referring to regional integration, our partner commented that the rules of origin in USMCA, which now provide for a higher percentage of regional content, for example, in the automotive industry, leading automotive firms will have to make an effort to comply with the new rules.
About TMEC, our partner emphasized the close commercial relationship and dependence that our country has with the US, but that it is necessary for Mexico to diversify its market through the use of FTAs such as TIPAT, despite the geographical location of its members. In this regard, he warned that Vietnam, a party to CTPP, could become China’s replacement regarding trade remedies in Mexico, as Vietnam has powerful steel, footwear, and textiles industries.
We invite you to read the full interview in the following link:
https://www.bestlawyers.com/article/vazquez-tercero-zepeda-law-firm-of-the-year/2521
Como se anunció anteriormente, la guía Best Lawyers consideró a Vázquez Tercero & Zepeda como la firma de abogados en comercio internacional de 2019. Como resultado de tan gran honor, Best Lawyers entrevistó a nuestro socio, Adrián Vázquez, para tener una visión legal sobre los desarrollos comerciales en México.
El CEO de Best Lawyers, Phillip Greer, conversó con Adrián Vázquez, donde nuestro socio platicó sobre una diversos temas, desde el futuro del comercio internacional en México, disputas de la OMC, por qué la renegociación del TLCAN está obligando a México a explorar nuevas vías para el comercio, como Europa y el Tratado Integral y Progresivo de Asociación Transpacífico (TIPAT, CPTPP en inglés), y las formas en que VTZ ha innovado internamente para adaptarse al mundo moderno.
Destacamos el comentario de Adrian al comentar sobre CPTPP:
Una vez estuve hablando con un abogado de comercio de Estados Unidos, y él me dijo que TPP se trata de tres países, Vietnam, Vietnam y Vietnam. Eso es algo en lo que deberíamos estar muy concentrados, porque Vietnam es muy competitivo en calzado, es competitivo en textiles y es competitivo en acero. Y esos tres son sectores muy sensibles en México.
Supongo que no exportaremos textiles, calzado o acero a Vietnam. Por el contrario, importaremos textiles, calzado y acero de Vietnam y esto abrirá nuevos casos de remedio comercial contra Vietnam. Primero, era China, pero Vietnam lo seguirá.
El artículo está disponible en el siguiente enlace:
https://www.bestlawyers.com/article/vazquez-tercero-zepeda-law-firm-of-the-year/2521
Adrian Vázquez, Best Lawyers, Comercio Internacional, CPTPP, Frima del Año, NAFTA, OMC, TIPAT, TLCAN, TPP, VTZ
As previously announced, the guide Best Lawyers considered Vázquez Tercero & Zepeda as the 2019 Trade Law Firm. As a result of such great honor, Best Lawyers interviewed our managing partner, Adrian Vázquez, to have a legal insight regarding trade developments in Mexico.
Best Lawyers CEO Phillip Greer had a conversation with Adrian Vázquez, where our partner discussed a broad range of topics, from the future of international trade in Mexico, WTO disputes, why the renegotiation of NAFTA is forcing Mexico to explore new avenues for trade such as Europe and the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP), and the ways VTZ has innovated internally to adapt to the modern world.
We highlight Adrian’s comment when commenting on CPTPP:
Once I was talking with a U.S. trade lawyer, and he told me that TPP is all about three countries, Vietnam, Vietnam, and Vietnam. So that’s something that we should be very focused on, because Vietnam is very competitive in footwear, it’s competitive in textiles, and it’s competitive in steel. And those three are very sensitive sectors in Mexico.
I would guess that we will not be exporting textiles, footwear, or steel to Vietnam. On the contrary, we will be importing textiles, footwear, and steel from Vietnam and this will open new trade remedy cases against Vietnam. First, it was China, but Vietnam will follow.
The article is available on the following link:
https://www.bestlawyers.com/article/vazquez-tercero-zepeda-law-firm-of-the-year/2521
Best Lawyers, CPTPP, featured, Law Firm, Mexico, NAFTA, trade, Trade Facilitation, USMCA, WTO
(Download the PDF version: Trading Room -20190614
Friday afternoon, Mexico and the US agreed on the migration crisis, an agreement that prevents, at least temporarily, the establishment of tariffs against products from Mexico. We highlight the following from the joint declaration and the press:
Sources:
Now that a major hurdle was avoided, the Mexican Senate is currently holding meetings regarding USMCA ratification. The Ministry of Economy provided the final English and the preliminary Spanish text of the treaty that are available in the following link: USMCA.
According to news outlets, the Mexican Senate may ratify USMCA next week, probably Wednesday 19 of June.
Sources:
International Trade, Mexico, NAFTA, TLCAN, TMEC, trade, USA, USMCA
Inbound Logistics‘s featured story of January is “U.S.-Mexico Trade: Strong But Shifting“, and the author, Karen M. Kroll, interviewed our associate, Emilio Arteaga Vázquez, about the recent events between Mexico and the US, namely the signature of USMCA and its possible impacts on the value chains.
In the piece, our member is mentioned in a couple of occasions. We highlight the following paragraph:
All companies, but particularly manufacturers, should review the USMCA and identify whether the rules of origin applicable to their goods were modified, Vazquez recommends. If the rules were modified, companies may need to seek new suppliers, reshore production of inputs, or prepare to pay a Most Favored Nation (MFN) duty.
The article is available in the following link: https://www.inboundlogistics.com/cms/article/us-mexico-trade-strong-but-shifting/
Emilio Arteaga, Inbound Logistics, Mexico, NAFTA, trade, US, USMCA
(for English, click here)
El lunes el Presidente, AMLO, tuvo un evento en Veracruz, un estado con producción agrícola. El Presidente afirmó que se van a revisar “los acuerdos que hicieron de venta de azúcar al extranjero y los permisos que dieron para usar edulcorantes que vienen del extranjero” y concluyó diciendo que “sí queremos el libre comercio y vamos a respetar los acuerdos, pero vamos a defender al productor nacional. “Primero México y luego el extranjero.”
Consideramos que el Presidente se está refiriendo al acuerdo celebrado en el marco de la revisión del acuerdo de suspensión de cuotas compensatorias por subsidios. Derivado de lo anterior, México estableció un cupo para las exportaciones de azúcar a los EEUU, y se establece la posibilidad de aumentar dicho cupo en caso de que EEUU lo considere necesario. Estos acuerdos solamente pueden “revisarse” bajo las leyes americanas, los escenarios de una revisión son múltiples, por ejemplo, la eliminación del compromiso pero con la imposición de derechos antidumping.
En cuanto a los permisos para importar edulcorantes (como el Jarabe de Maíz de Alta Fructuosa), dichos permisos no existen. Los edulcorantes están sujetos a un arancel (NMF) de 75% (ad valorem), pero pueden importarse libres de arancel mediante los cupos de importación si son originarios de los EEUU de conformidad con el TLCAN. De acuerdo con el capítulo 3 y el Anexo 3-B de TMEC, México podrá continuar manteniendo dicho mecanismo de cupos; sin embargo, la adopción de una restricción (como un permiso o licencia) a las importaciones de edulcorantes podría ser incompatible con el TMEC.
https://www.milenio.com/politica/amlo-revisaran-acuerdos-venta-azucar-extranjero
Este jueves el Departamento de Comercio (DOC) de los EEUU anunció públicamente su intención de retirarse del acuerdo de suspensión que evitó el seguimiento de una investigación antidumping contra tomate mexicano, el cual está vigente desde 1996. Los exportadores mexicanos se comprometieron a respetar un precio de referencia mínimo para sus ventas a EEUU; sin embargo, los productores americanos (principalmente de Florida) consideran que el acuerdo de suspensión no ha sido suficiente para detener “la práctica desleal de comercio internacional”.
El acuerdo de suspensión exige notificar la intención de retirarse del acuerdo con 90 días de anticipación, plazo que inició el 6 de enero y vence el 7 de mayo. Si dentro de estos 90 días no se llega a un nuevo acuerdo, los EEUU completarán su salida y el DOC continuará su investigación de dumping. Si hay una determinación positiva de dumping, la Comisión de Comercio Internacional analizará el “daño” a la industria nacional, por lo que existe la posibilidad de que se impongan derechos antidumping al tomate mexicano.
Esta no es la primera vez que los EEUU amenazan con retirarse de este acuerdo, y ahora se da en el contexto de la ratificación de TMEC.
https://www.eluniversal.com.mx/cartera/economia/se-abre-nuevo-conflicto-con-eu-ahora-por-el-jitomate
https://www.milenio.com/negocios/exportacion-de-tomate-mexicano-esta-en-negociacion-con-eu-se
Azúcar, Investigación antidumping, NAFTA, Permiso de importación, TLCAN, TMEC, Tomate
El 30 de noviembre de 2018 los jefes de estado Enrique Peña Nieto, Donald Trump y Justin Trudeau firmaron el TMEC (o USMCA, por sus siglas en inglés), el cual remplazó el 1 de julio de 2020 el Tratado de Libre Comercio de América del Norte (TLCAN).
El día 10 de diciembre de 2019, los tres países firmaron un protocolo modificatorio al TMEC, mismo que fue aprobado por el Senado. En el siguiente link puedes consultar el texto del protocolo:
El día 29 de junio de 2020 se publicó el texto final del TMEC en el Diario Oficial de la Federación, el cual contiene más de 1,000 páginas. En línea con nuestra misión, VTZ abogados desea facilitar a todos los interesados en tener fácilmente a su alcance el o los capítulos del TMEC que le sean de su interés.
*No obstante nuestro esfuerzo, sugerimos siempre consultar la versión del Diario Oficial de la Federación para cualquier tema oficial y para mayor certeza legal. No nos hacemos responsables de alguna omisión. Cualquier duda o comentario, no duden consultar alguno de nuestros miembros. Mayor información info[@]vtz.mx
También puedes visitar la página del USTR para consultar el texto en inglés :
Capítulos del TMEC, Diario Oficial de la Federación, DOF, featured, NAFTA, Protocolo Modificatorio del TMEC, TLCAN, TMEC, TMEC texto, USMCA, USMCA texto
Our associate, Emilio Arteaga, reviews Mexico’s trade remedy system, in particular, antidumping duties, as well as trade developments in 2018.
In the video, our associate provides historic figures regarding investigations, antidumping duties, protected industries, and targeted countries. Also, our associate reviews Mexico’s practice regarding whether China qualifies as a Market Economy or Non-Market Economy in antidumping proceedings is addressed.
antidumping, China, Countervailing measures, International Trade, Market economy, Mexico, NAFTA, Non-market economy, steel, subsidies, trade, Trade Remedy, USMCA, WTO
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