‘Mexico must strengthen ties with T-MEC in the face of Chinese advance’

by times news cr

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Mexico must strengthen ties with its main business partners who are I Canadagiven the advance of Asia, pointed out Kenneth Smithformer chief negotiator of the T-MEC.

“We must define how to jointly face the competitive pressure from Asia and particularly from China, especially in the semiconductor sector, lithium batteries and the production of electric cars”.

Within the framework of the first meeting between American businessmen and the Government of Mexico that will take place this October 14 and 15, Smith, who negotiated the Free Trade Agreement A few years ago, he said that we must work in a very constructive way to become a more competitive region.

Given this opportunity and this great moment, it is necessary to review what we have to do in terms of supply of renewable energy, in training the workforce and in the issue of investment in infrastructure, he also pointed out that it is very necessary to improve security in the country.

Founding partner of the consulting firm Agon, Smith Ramos insisted that Mexico must completely close access to Asian inputs, although we have to recognize that this is not going to happen completely.

“But if we can generate the capabilities to attract investment in sectors where we depend greatly on the value chains of China and at the same time open joint programs with USA y Canada to stop unfair trade practices on a regional basis.”

An expert in tariffs and international trade, Kenneth Smith explained that the recent changes to Pemex and the CFE approved by the Mexican Congress are not reflected in the agreements signed with the T-MEC, That is to say, for international partners the sector is completely open in terms of electricity generation, so denying them access eventually by blocking the entrance to only 46% of the market contravenes what was agreed.

“It is a clear violation of the treaty if it is implemented like this, because we had committed as a country to provide access in accordance with a current constitutional framework, if you later modify it,”there is a setback… and you are subject to possible disputes and retaliation by the US and Canada.”

On the other hand, Smith said that the Mexican market is very important to the United States; we are its main destination for many priority export products, mainly in the agricultural sector, “Then we must all understand that it is a relationship of equals.”

He insisted that our country must bet on T-MEC as the most important trade agreement, since it is the economical tool most important to promote the country’s foreign trade.

The international trade analyst explained that we will have to be attentive to what happens with the secondary laws of the reform of the Judiciary and know if through them it will be possible to clarify, if the way to renew the authorities will be armored for exampleorganized crime and some other interests.

He pointed out that there are many aspects that can be improved with the secondary laws of this reform so that it does not become an obstacle, gives us legal certainty and does not become another violation of the T-MEC.

“On the other hand, we must be aware of what happens with the disappearance of the autonomous bodies (Inai, Cofece and others) and everything related to the reforms will be very relevant to see what position to take as an investment or as business partners.”

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