Mexico in WEF
From 22 to 25th of January the World Economic Forum (WEF) was held, and this year’s topic was “Globalization 4.0: Shaping a Global Architecture in the age of the Fourth Industrial Revolution”.
Underminister of International Trade, Luz María de la Mora, attended WEF to inform the economic policies of the new government.
The Underminister mentioned that the policy is based on three pillars: innovation, inclusion, and diversificación. These “pillars” are yet to be explained clearly, which will most likely be addressed in the National Development Plan.
In an interview, the Underminister mentioned that the update of the Free Trade Agreement between Mexico and the European Union is still subject to a legal review of the text and it could be signed on April.
Regarding USMCA, she said that the government is expecting that it should be ratified this year notwithstanding the internal politics in the US and the measures against steel and aluminum products.
SAM: Saving Agri-food producers?
Last Friday a decentralized governmental body was created “Mexican Food Security” (SAM, acronym in Spanish), which has as a purpose to support the federal government with its agricultural policy.
The new president, AMLO, promised to “rescue” this sector, in particular, the small and medium producers of “basic” agricultural producers and milk. SAM’s numerous purposes are, among others, “coordinate the purchase” of said products at “support prices”, “promote the commercialization of excess production to foreign markets”, “sale and distribute fertilizers, improved seeds…”.
Some of SAM’s activities will likely classify as a “subsidy” pursuant WTO Law and, if international trade is distorted, countries can submit claims or initiate trade remedies measures like countervailing duties, as happened with the Mexican sugar in the USA.
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