New Agreement With Canada / Working Groups with Asia

New Agreement With Canada. President Claudia Sheinbaum reported that Mexico has reached agreements with Canada regarding non-tariff barriers under USMCA, positioning the country favorably ahead of the upcoming trade agreement review.

Sheinbaum explained that these non-tariff barriers cover a range of issues, from complex matters such as electricity production to specific cases like the company Calica, as well as other minor matters. “What is important is that there is now an agreement on all 54 points. The entire cabinet worked on this, always maintaining our principles and prioritizing what is best for Mexico,” she stated.

Working Groups With Asian Countries. Sheinbaum said her government is holding discussions with countries including India, China, and South Korea to explore potential trade agreements and define frameworks that strengthen domestic production without affecting consumer prices. 

She explained that the aim is to prevent import taxes from causing inflation or disrupting production, particularly in sectors reliant on inputs from countries with which Mexico has no trade agreements. “We do not want to trigger inflation through higher prices due to these taxes, nor create a situation where certain products can no longer be produced in Mexico because they rely on inputs from countries without treaties,” she emphasized.

Middle Class. Sheinbaum highlighted social and economic progress, noting that for the first time in recent history, Mexico has a higher proportion of people in the middle class than in poverty, according to World Bank and INEGI data.

 “It is interesting … In 2000, the middle class represented 18.1% of the population, while poverty reached 55.1%. After three neoliberal administrations, little changed. In 2022, despite the pandemic, more people were recognized as middle class than poor. By 2024, even more families have moved out of poverty into the middle class,” she said.

Jesús Ramírez Cuevas, Coordinator of Presidential Advisors, noted that, alongside Brazil, Mexico has experienced one of the fastest expansions of the middle class in Latin America in recent years. “The growth of the middle class in Mexico and Brazil stands out in the region, with poverty declining by more than 13% and the middle class expanding in a way unprecedented in our country,” he said.