USMCA Does Not Restrict Mexico From Reaching New Trade Agreements: Mexican Foreign Secretary

USMCA Does Not Restrict Mexico From Reaching New Trade Agreements: Mexican Foreign Secretary

LAW2018101065623121 Mexico City El Economista.com.mx in Spanish 10 Oct 18

PRODUCT DESCRIPTION

The body of this product is a translation of original foreign-language material.
Report by Rolando Ramos and Salvador Corona: "USMCA Does Not Restrict Mexico for New Agreements: Videgaray"

CAVEATS

The following is a machine-based translation that has been edited to correct major errors in accuracy and grammar.

BODY

The new trade agreement between Mexico, the United States, and Canada (USMCA) does not restrict the sovereign right of the Mexican nation to negotiate trade agreements with other countries, for example, with China, said Luis Videgaray Caso.

When appearing before the plenary session of the Senate, on the occasion of the analysis of the sixth and last report of the government of President Enrique Pena Nieto, the Secretary of Foreign Affairs gave a timely response to the question made by Hector Vasconcelos, president of the Foreign Relations Commission in the Upper House, a militant of the National Regeneration Movement Party (Morena).

"We have to make this very clear. The new negotiated text does not limit in any way that Mexico enters into commercial agreements with any other country, in the first place. There is no provision that generates a limitation, neither with China nor with any other economy, regardless of its characteristics or geographical location."

The official explained that the new treaty provides that if one of the parties wants to withdraw because another of the partners is negotiating a trade agreement with another economy, has an obligation to immediately negotiate a bilateral agreement with the third partner.

"Why is this valuable for Mexico? Imagine that for some reason Canada decides to negotiate a free trade agreement with China and the reaction of the US is that it wants to abandon NAFTA. This generates an obligation for the United States to immediately begin a bilateral negotiation process with Mexico, so as not to affect Mexico. In reality, what is introduced is not a restriction, it is an obligation for the country that would like to withdraw from the treaty, to negotiate with the partner that is not part of this controversy. And I think it is an advantage."

Obligations in the fight against corruption

Mexico, the United States, and Canada are obliged, as part of the new trade agreement, to establish legal measures to combat the crimes of bribery, international bribery, and embezzlement committed by companies and authorities. According to a report sent to the Chamber of Senators by the Economy Secretariat, said obligation is aimed at fighting corruption in the region.

rramos@eleconomista.com.mx