La Jornada: T-MEC is maintained as an agreement that provides certainty: transnationals

Private sector organizations that bring together transnational companies that operate in Mexican territory expressed their confidence in the T-MEC, as it will continue to provide certainty during the period of annual reviews for 10 years.

“The treaty remains in force at least until 2036 and continues to be the framework that has allowed North America to consolidate itself as one of the most competitive poles in the world in manufacturing, innovation and productive integration. The review is not a threat to that architecture: it is the opportunity to strengthen it, deepening the integration of value chains, increasing regional content and fine-tuning the rules for the next decade of investment,” Global Companies, a group made up of more than 60 transnational companies with operations in Mexico, said in a statement.

In a conference, Pedro Casas Alatriste, vice president and general director of the American Chamber of Commerce Mexico, an organization that brings together the main binational firms from Mexico and the United States, pointed out that the new phase of the agreement provides a framework of certainty for both companies and investors.

He added that this one-decade horizon allows companies to plan long-term investments, while the private sector trusts that, in that period, the extension of the agreement for 16 more years will be achieved. “It would be a probability close to zero that in 10 years a consensus will not be achieved to extend the treaty,” he pointed out.

Casas Alatriste indicated that to reduce uncertainty in the agreement, Mexico must prioritize implementation.

Confidence of Concamin

The Confederation of Industrial Chambers (Concamin) indicated in a statement that it is confident that the T-MEC will continue to be key to strengthening the competitiveness of North America, by boosting regional trade, attracting investment and generating quality jobs. Likewise, he supported the strategy undertaken by the government of President Claudia Sheinbaum Pardo.

Larry Rubin, president of the American Society Mexico (Amsoc), said earlier in a conference that the T-MEC review is on the “right path.”

“An annual review is definitely important news and news that the markets have reacted favorably, because it is definitely important to hear in the United States that they are interested in the continuity of the T-MEC,” said the businessman, who also recognized the proactive role of Mexico compared to Canada.

He pointed out that the new panorama is not ideal, but given the current circumstances it is “advance on the right path,” especially for investments. He commented that based on the public statements of the president of that nation, Donald Trump, “his priority is security,” above trade.