Mexico’s relationship with its two main trading partners in the world: the United States and Canada, registers one of the moments of greatest tension since the North American Free Trade Agreement (NAFTA) was signed on January 1, 1994. .
The issue that is causing tension is not the recently approved Judicial Reform.
Nor is it the ongoing approval of the extinction of autonomous bodies.
The rigidity in relations between the three countries is not being caused by the energy counter-reform, nor by the ban on transgenic corn.
It is not even the growing production and export of drugs, pointed out and accused by the US.
Neither does the migratory flow that crosses the national territory to reach the United States.
Although each and every one of these issues are red flags, and cannot be ruled out as points of uncertainty and tension, particularly with the United States.
The issue that is putting Mexico’s trade relationship with the US and Canada at risk is China.
China is the declared commercial enemy of the United States.
In 2018, as president of the United States at the time, Donald Trump began the industrial and trade war against China.
He decided to impose tariffs on $50 billion on Chinese products for alleged “unfair trade practices,” theft of intellectual property and a forced transfer of American technology to China.
With the slogan Make America Great Again, the US president, in his first term, promoted a growing protectionist policy and advocated reducing the US trade deficit and promoting manufacturing in his country.
Trump will once again be, as of January 20, US president and judging by his speeches and the appointments of the team that will accompany him in his government, he is “recharged” and much more focused on fulfilling his electoral promises.
During his campaign he made false accusations that Chinese automakers are building huge plants in Mexico and promised to impose 200% tariffs on any vehicle that leaves those factories and is shipped to the United States.
In the electoral contest, the objective in Trump’s speech related to Mexico was Chinese electric cars and the potential and supposed loss of jobs in the United States.
More recently, the accusation against Mexico has escalated.
Voices were heard from Canada, from the Prime Minister of Ontario, Doug Ford, and then from the Prime Minister of Alberta, Danielle Smith, accusing Mexico of not equaling the tariffs applied by the US and Canada to Chinese imports.
Both spoke out for the expulsion of Mexico from the T-MEC.
Later came the statement from the Prime Minister of Canada, Justin Trudeau, after the meeting he had with the President of Mexico, Claudia Sheinbaum.
Trudeau said that “Canada would like to maintain the North American trade agreement, but it depends on the decisions Mexico makes. We will ensure Canada’s jobs and growth for the long term. Ideally we would do this with a united North American market, but, pending the decisions and choices Mexico has made, we may have to consider other options.”
In the US and Canada, they have said that China is using Mexico as a back door to enter those countries.
The Mexican government, until a few days ago, publicly maintained a position of confidence that it could provide information that refutes the accusations of its counterparts.
The accounting explanation, it seemed and without a doubt, is very weak.
But last Friday, the president of Mexico, Claudia Sheinbaum revealed that her government has a plan.
Mexico plans to substitute imports from China and produce them in the country.
This is a North American regional plan that was presented to President Joe Biden, the Chief Executive reported last Friday (November 22).
At the same conference, the Secretary of the Treasury, Rogelio Ramírez de la O, reported that the imbalance between Mexico and China is 80 billion dollars.
Sheinbaum highlighted that the Plan is prepared by the Secretary of the Treasury and the head of the Economy, Marcelo Ebrard.
Mexico’s strategy, of looking for companies from the US, Canada and Europe that manufacture in Mexico and allow it to substitute imports from China, sounds much more convincing than the initial message of persuading our main trading partners through an accounting explanation.
The way to eliminate the perception of adversaries that the governments of the United States and Canada have about Mexico is through strengthening the North American regional bloc.
Additionally, Mexico will have to review those issues that cause disputes in relations regarding energy, migration and security.
At the time.
