Mexico, U.S. begin talks to review free trade agreement

The United States-Mexico-Canada Agreement is critical to the Mexican economy, as the United States accounts for more than 80% of Mexican exports.

The treaty is renewed every six years. The first round of bilateral talks takes place in Mexico City and will last until Friday.

Mexican President Claudia Sheinbaum said on Wednesday she was optimistic the neighbors could reach a deal.

“This will be a very productive conversation,” she said, noting that Economy Minister Marcelo Ebrard met with U.S. Trade Representative Jamieson Greer the night before.

Ebrard said in a statement that the talks were aimed at “defining concrete results that would benefit the region.”

“Mexico and the United States reaffirm their commitment to continue to strengthen bilateral cooperation to build a more integrated, dynamic and strong North America,” he added.

Greer’s office said in a press release that the talks “will include negotiations on economic security and rules of origin for critical industrial products.”

“The negotiations are focused on ensuring that USMCA benefits American manufacturers, farmers, ranchers, workers and service providers as well as businesses of all sizes, including our small and medium-sized businesses,” it added.

Future rounds of negotiations will take place in Washington in June and then in Mexico City in July.

The agreement between the three countries is undergoing its first revision this year since its implementation in 2020.

– Tensions and threats –

Trump’s threat to withdraw the United States from the deal, arguing that it would be of no benefit to the U.S. economy, cast a shadow over the first round of discussions.

According to US media reports, Trump told advisers in February that he wanted to withdraw from the US-Mexico-Canada Agreement after accusing Mexico of opening the door for Chinese products to enter the region.

The tense trade talks come as Washington puts increasing pressure on Sheinbaum to crack down on organized crime.

In late April, the United States requested the arrest and extradition of 10 politicians from Sheinbaum’s ruling Morena party.

At the center of the indictment is former Sinaloa governor Ruben Rocha Moya, who took a leave of absence days after the United States accused him of protecting the powerful Sinaloa drug cartel.

Relations between the two countries were also strained last month after two U.S. officials reportedly died in a car crash while accompanying soldiers and prosecutors on a raid on a drug laboratory in the northern state of Chihuahua.

Scheinbaum has ordered an investigation, saying the operation may have violated national security laws prohibiting unauthorized foreign agents from operating within Mexico.

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