Dominican Republic must closely monitor the commercial changes that will occur in the main North American markets as a result of a tightening of trade policy of States and Canada against Mexico, to take advantage of them in their favor.
Given that Mexico is one of the main competitors of the Dominican Republic in those markets, the outcome could make more competitive Dominican products in relation to Mexican ones.
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A tightening of the US and Canadian trade policy on imports from Mexico would not only allow Dominican products to reach those markets with lower tariffs, but, unlike what could happen with Mexican products, they would not be subject to processes. that would lengthen the time to enter those markets.
We write it this way because recent events suggest that nothing could prevent Mexico from facing that reality. Not only is Hurricane Trump threatening to toughen trade policy in Mexico, but other winds as strong as those of that hurricane push with the same purpose.
Doug FordPrime Minister of Ontario (Canada’s industrial engine that concentrates the country’s entire automobile sector), has asked to expel Mexico from the T-MEX, in the midst of growing tension due to the statements of the elected president of the country of stars and stripes , Donald Trump.
Their reason?: “Since signing the USMCA, Mexico has become a backdoor for Chinese cars, auto parts and other products to enter the Canadian and US markets, putting livelihoods at risk. of Canadian and American workers, undermining our communities and causing enormous damage to our shared economic success.”
And he has said more: “If Mexico wants a bilateral trade agreement with Canada, may God bless them. But I’m not going to let myself go down with these cheap imports that take away the jobs of Ontario men and women.”
The moment could not be more favorable for the winds blowing against Mexico to become more threatening. Trump takes office on January 20 and the Government of the Canadian Prime Minister Justin Trudeau The machinery has already been launched to review the treaty with Mexico, which should conclude in 2025.
The procedures of the treaty establish that in July 2026, on the sixth anniversary of the entry into force of the USMCA, its Free Trade Commission will meet to review the agreement and any recommendations presented by Mexico, the United States or Canada. and decide on any appropriate action.
