Mexico Ready for USMCA Review: Marcelo Ebrard

Marcelo Ebrard, incoming Minister of Economy, emphasized Mexico's readiness to review the USMCA, aiming to secure new benefits for Mexico. Ebrard clarified that the government is not concerned about the revision, as this does not involve a full renegotiation of the treaty. However, experts have raised concerns regarding new reforms that could potentially violate USMCA’s provisions.

"If it has worked well, there may be some additions, but we have no intention of revising the whole treaty. Mexico and the United States have the most significant security agreement globally. Economically, I see many promising aspects," Ebrard remarked.

Previously, the Mexican Institute for Competitiveness (IMCO) warned of potential trilateral issues due to the Mexican government’s 18 constitutional reform initiatives. Of these, IMCO has identified five that could potentially violate USMCA's provisions: the elimination of autonomous bodies like COFECE and CRE, banning concessions for open-pit mining activities, limiting CFE's ability to contract with private companies, banning genetically modified corn, and prioritizing water availability for personal and domestic use.

Regarding the ban on open-pit mining, while it has been established that it will not affect existing concessions, IMCO stressed that there could be conflicts arising from Chapter 14, as it prohibits preferential treatment toward public companies over private investors from other countries. Regarding the energy reforms, IMCO also highlighted a potential conflict with the Ratchet clause, which stipulates that a country cannot roll back pro-trade and investment measures or close sectors that were previously open to private participation.

The future of USMCA will be influenced by the results of the US elections. While Louise Blais, Former Ambassador, Canada, said that no matter who wins, the treaty will remain in place, as the United States needs Mexico for trade, Donald Trump has previously used trade to pressure Mexican authorities, which means relations may turn hostile. However, Ebrard stated that, having previously participated in negotiations with Trump and his team, he does not foresee significant challenges.