The Treaty between Mexico, the United States and Canada (T-MEC), the document reads, promotes the free flow of agricultural products without barriers, promoting innovation that boosts productivity and increases resilience, “helping both countries to combat inflation and supporting vulnerable families.”
Mexico plans to buy up to 20,000 tons of powdered milk from the United States in support of Mexican families in rural and urban communities, one million tons of fertilizer (ammonium sulfate) to distribute among small subsistence producers of corn, beans and will continue buying animal feed for small producers.
The governments of Mexico and the United States have also committed to a joint multi-year plan to modernize infrastructure along the more than 3,000 kilometers of common border.
The plan will align priorities, unite border communities, and make the flow of people and commerce safer and more efficient. President Biden’s Bipartisan Infrastructure Act includes $3.4 billion to carry out 26 construction and modernization projects for land ports of entry on the northern and southern border,” the joint statement said.
In addition, Mexico promised to “invest $1.5 billion” in border infrastructure between 2022 and 2024.
Likewise, in the next High-Level Economic Dialogue (DEAN), to be held in September, the focus will be on strengthening mechanisms to create safer and more efficient trade corridors, promoting an environment that promotes investment to generate more and better jobs both in Mexico as in the United States.
The United States and Mexico are facing their biggest price hikes in history – 8.6% and 7.99% respectively – which has forced their respective central banks to raise credit costs to try to contain inflationary pressures, but which have sparked fears that the world’s largest economy is headed for a recession.