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Mexico seeks an early agreement in steel, aluminum, and automotive sectors ahead of CUSMA

Mexico aims to reach an early trade agreement with the United States in the steel, aluminum, and automotive sectors before the review process of the Canada–United States–Mexico Agreement (CUSMA) is completed.

Mexico seeks an early agreement in steel, aluminum, and automotive sectors ahead of CUSMA

Mexican President Claudia Sheinbaum stated on Monday that these sectors are of critical importance to the country’s economy and expressed optimism that a “preliminary agreement” could be reached.

Sheinbaum made her remarks during a press conference held while U.S. Trade Representative Jamieson Greer was in Mexico as part of the negotiations.

Steel, aluminum, and automotive as priority sectors

Emphasizing the strategic importance of the steel, aluminum, and automotive sectors for Mexico, Sheinbaum said, “Of course, steel, aluminum, and automobiles are very important for us. We hope to reach a preliminary agreement.”

Mexico is a key supplier to the United States, particularly in exports of automobiles, automotive parts, machinery, and mechanical equipment. A large portion of the country’s exports is protected under the North American trade agreement.

CUSMA process is of critical importance

It is stated that the CUSMA review negotiations taking place this year are critical for Mexico’s economy. The United States is reportedly considering tightening rules of origin, particularly to prevent Chinese-origin products from entering the U.S. market duty-free via Mexico.

The course of the negotiations is expected to be decisive for trade flows and industrial supply chains in North America.

Source: Reuters

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