English, News

COVID, USMCA, Mexican Corn – The Trading Room – Economic Newsletter

17 Apr , 2020  

Download our newsletter, The Trading Room, in the following link Trading Room -17042020

COVID: USMCA and Rules of Origin

This week it was reported in news outlets that industries in the region are seeking to postpone the entry into force of the USMCA automotive rules of origin; that is, to establish a transition period for said rules after USMCA’s entry into force.


USMCA’s entry into force remains a pending issue. So far, the US has not notified the completion of its internal procedures to trigger the 3 months term for its entry into force. However, it is said that it will take effect in mid-July or no later than September 1, which implies notification within the following weeks or months.


The region’s auto industry is concerned that rules of origin (RoO) will apply immediately with USMCA’s entry into force; regional content requirements will increase progressively. For this reason, 10 legislators in the US delivered a letter to the US Trade Representative (USTR) requesting “flexibility” and an adjustment period because COVID affected production in the region, complicating compliance with RoOs. In this regard, President Trump acknowledged last weekend that the agreement is different from the point of view that production will be lower.


In the case of Mexico, the president of the National Association of Buses, Trucks, and Tractor-trucks Producers (ANPACT), commented that “the complexity of complying with the origin regulations lies in the fact that for each component of a vehicle, calculations of regional content, the labor component, steel, and aluminum. In the case of an engine, they have approximately 700 suppliers, so meeting these requirements can take months.”



Furthermore, USMCA’s Uniform Rules are still being negotiated.

USMCA and the Law on Native Corn

On Monday the Federal Law for the Promotion and Protection of Native Corn was published in the Official Gazette of the Federation.

In essence, this law provides the following:

i) The production, marketing, consumption and constant diversification of native corn is recognized as a national cultural manifestation, and

ii) access to Native Corn is guaranteed without genetically modified organisms.

Since 2019, this law is somewhat controversial because it seeks to protect Mexican Native Corn from Mexico’s USMCA commitments to adhere to the International Convention for the Protection of New Varieties of Plants (UPOV 1991), Mexico is a party to said Convention but according to the 1978 Act. These conventions authorize the registration of patents on plant genes and varieties. However, UPOV 1991 extends rights to holders of such patents as compared to UPOV 1978.


Regardless of the above, we highlight that this law does not introduce restrictions on the importation of any type of corn into national territory.

VTZ contributed with Thomson Reuters Practical Law


For the third year, VTZ contributed Thomson Reuters Practical Law in the Guide to International Trade in Goods and Services in Mexico. Our Managing Partner, Adrian Vázquez, Junior Partner, Emilio Arteaga, and Associate, Mariana Malváez, answered a guide on key issues of international trade regulation in Mexico. Check the Guide here.

, , , , ,

By  -        

101 Responses

  1. chloroquine cvs https://chloroquineorigin.com/# side effects hydroxychloroquine

  2. Prietrege says:

    https://buysildenshop.com/ – the effects of viagra on women

  3. PatrickNed says:

    cialis price cialis online

  4. Cialis Bruciore Di Stomaco

  5. chloroquine for lupus hydroxychloroquine pills hydroxicloriquine

  6. Isotretinoin 10mg overseas low price

  7. cialis cost says:

    Buy Cialis Brand Online

  8. zithromax epocrates taking zithromax zithromax drug

  9. nikkomycin z zithromax cures generic name for z pack

  10. Lasix says:

    Amoxicillin Allergy Rash

  11. hydro chloroquine hydroxychloroquine dosage hydroxychloroquine 200 mg twice a day

  12. Plaquenil says:

    Generic Isotretinoin Pills

  13. bactrim trimethoprim mechanism of action

  14. I was extremely pleased to uncover this great site. I want to to thank you for ones time for this particularly fantastic read!! I definitely enjoyed every part of it and I have you saved to fav to check out new stuff on your blog.

  15. After I initially left a comment I appear to have clicked on the -Notify me when new comments are added- checkbox and now whenever a comment is added I recieve four emails with the exact same comment. There has to be a way you can remove me from that service? Cheers!|

  16. what is hydroxychloroquine for https://plaquenilx.com/# hydroxychlor

  17. Viagra Purchase Australia

  18. prednisolon day dose prednisone weight gain

  19. Meapserar says:

    https://prednisonebuyon.com/ – mnon prescription prednisone

  20. gay dating service out personal custormer service https://gaypridee.com/

  21. Melina Oesch says:

    I like this post, enjoyed this one appreciate it for putting up.

Leave a Reply

Your email address will not be published. Required fields are marked *