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Ministry of Economy at the Senate & Adjustments to CPTPP? – Trading Room

15 Mar , 2019  

Newsletter - Mexican Ministry of Economy Steel Industry, 232 Measures, Countermeasures, Mexico, CPTPP, Trade Law

The Trading Room

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Hearing at the Mexican Senate’s Economy Commission

On Wednesday last week, Luz María de la Mora, Underminister of International Trade, and Ernesto Acevedo, Underminister of Industry and Trade, attended to a hearing in the Economy Commission of the Mexican Senate.

Mexican Steel Industry

Ernesto Acevedo’s speech was fully focused on the current state of the steel Industry. We highlight that the underminister mentioned that the decree that is going to establish a raise of (MFN) tariffs (also improperly known as safeguards) is “in the process of the presidential signature” and that import licenses may be implemented for temporal steel imports made by IMMEX (maquiladora) companies.

During his speech, he also noted the importance of the Steel Industry for the Mexican economy, the global overcapacity in steel, that the trade war between China and US does not benefit Mexico, and that Mexico has a trade deficit and its major suppliers are US, Japan, and South Korea.

US 232 Measures and Mexican Countermeasures

Luz María de la Mora’s speech aimed at the 232 US measures against Mexican steel and aluminum. We highlight that she mentioned that the Ministry is currently in talks with the USTR in order to eliminate the measures and that they are also analyzing whether to do adjustment to the US products that are subject to Mexico’s countermeasures in order to pressure new US representatives that are in Congress.

Furthermore, she noted that the Steel Industry has requested “mirror countermeasures”, but that the Ministry has a more wide vision in the sense that it is necessary to have a variety of products since this is mainly a political dispute and not economic.

Sources:

https://www.gob.mx/se/prensa/mensaje-inicial-del-subsecretario-de-industria-y-comercio-ernesto-acevedo-con-la-comision-de-economia-del-senado-de-la-republica?idiom=es

https://www.gob.mx/se/prensa/mensaje-inicial-de-la-subsecretaria-de-comercio-exterior-luz-maria-de-la-mora-con-la-comision-de-economia-del-senado-de-la-republica?idiom=es

Adjustments to CPTPP?

Yesterday it was reported that the Chief of the Presidency Office, Alfonso Romo, mentioned that the government does not reject the idea to modify CPTPP through side-letters, statements made in an event of the textile industry. In fact, Mexico executed two side letters with Vietnam:

  • Trade on Certain textiles and apparel goods under the Short Supply List of Products and on babies’ synthetic garments
  • Program related to Registered Textiles and Apparel Enterprises in Vietnam for information sharing and supporting risk management in identifying and addressing customs offenses.

In particular, we note that Mr. Romo commented that “if we have to do a mistake, we will do so protecting than not protecting, it is the only way that we can have a powerful Mexico.” The textile industry argues that it is in a disadvantage regarding the Vietnamese industry (CPTPP party), which has State-Owned Enterprises.

Sources:

https://www.jornada.com.mx/ultimas/2019/03/14/se-protegera-la-industria-ajustando-acuerdos-comerciales-alfonso-romo-5685.html

https://www.gob.mx/cms/uploads/attachment/file/86771/Indice_de_acuerdos_paralelos.pdf

 

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News

THE NEW MINISTRY OF ECONOMY – THE TRADING ROOM

11 Jan , 2019  

Mexican Ministry of Economy, NAFTA, USMCA, TMEC, Secretaría de Economía

The New Mexican Ministry of Economy

This week on the Trading Room:

On December 20th, members of the Ministry of Economy held a press conference. We highlight the following statements:

  1. Northern Border Policy

In December 31th, this policy was made official when the Decree on Tax Incentives in the Northern Border was published in the Official Gazette, entering into force in January 1, 2019…See More

  1. CPTPP

This treaty, which entered into force on December 30th between six countries, is seen as an instrument that will promote innovation and competitiveness in Mexico…See More

  1. China

The Underminister of International Trade wishes “to build an agenda with China that respond to the interests of both nations”…See More

  1. 232 Measures on Steel and Aluminium

We highlight that the Minister stated that there is a “working hypothesis with great soundness that USMCA will not be signed if the steel issue is not resolved”…See More

  1. WTO Tuna & Safeguards

In response to a question, the Minister mentioned that she was having a meeting with the Minister of Agriculture to discuss the recent events of the tuna dispute of the WTO…See More

 

 

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