“Even though economic and commercial relations between our countries have been strengthened like never before, it is essential to continue planning together for the placement of new investments and the creation of jobs.” – tweeted Mexico President López Obrador after meeting with U.S. Special Presidential Coordinator for Global Infrastructure and Energy Security Amos J. Hochstein. |
A positive high-level bilateral agenda. The third U.S.-Mexico High-Level Economic Dialogue (HLED) took place in Washington. As in previous editions, the governments spoke of the benefits of collaboration on four pillars:
post-COVID-19 economic recovery, fostering sustainable growth in southern Mexico and Central America, enhancing regulatory alignment for future prosperity, and prioritizing people, with a focus on democratizing North American economic ties. They avoided public discussion of the escalating energy and biotech corn conflicts. - Diving deeper:
Long-term policy alignment makes economic sense, as strong cross-border value chains enhance North American competitiveness. This point was underscored at the HLED, and by President López Obrador’s meeting soon thereafter with Amos J. Hochstein, U.S. Special Presidential Coordinator for Global Infrastructure and Energy Security.
- Our takeaway:
The difficult issues remain, of course, and can easily take over the agenda. Less than a week after the HLED, President Joe Biden decided to waive 26 federal laws to allow border wall construction. Also, the bilateral High-Level Security Dialogue is scheduled to take place in Mexico City, with
fentanyl front-and-center. Reaching basic understandings of urgent political matters can be as impactful as a long-term regional vision.
| Keeping an eye on steel and aluminum.
In a meeting with U.S. Trade Representative Katherine Tai, Mexican Secretary of Economy Raquel Buenrostro agreed to intensify monitoring of steel and aluminum exports, in an effort to prevent third countries from routing products through Mexico to avoid U.S. tariffs. This came after pressure from both
Mexican and U.S. industry groups. - Diving deeper: In 2019, Mexico and the U.S. agreed to lift reciprocal tariffs that originated over similar concerns. The deal includes clauses
allowing for monitoring and for the reimposition of tariffs in the event of rapid increases in imports. The U.S. imported 72% more steel and 86% more aluminum from Mexico in 2022 than in 2017.
- Our takeaway: Given troubling allegations
spanning a decade, progress on monitoring the origins of aluminum and steel exports is overdue. Legitimate trade benefits both countries. Large-scale contraband clearly does not.
| Courting voters abroad.
Mexicans will go to the polls to elect a new President in June 2024. Campaigns are yet to officially begin, but presumptive candidates Claudia Sheinbaum and Xochitl Galvez are currently trying to engage Mexican citizens in the United States. Galvez recently concluded a two-day visit to California, where she met with community leaders and agricultural workers. Sheinbaum announced a similar tour to talk to Mexicans.
- Diving deeper: Mexicans have been able to vote from abroad since 2006, yet only 98,470 votes (out of 56 million total) were cast this way in the 2018 presidential election, 77.71% of them from the United States. However, a higher participation rate is expected next year as pre-registered voters will now be able to cast their votes online.
- Our takeaway: About 37.2 million people of Mexican descent live in the U.S., of which 10.7 million were born in Mexico. Remittances that workers send across the border have hit record highs.
It remains to be seen if the candidates’ meetings with Mexican and Mexican American community leaders lead them to advocate more openly for North American integration.
| Following the conversation: - “We
did not cover corn, however, and that’s not because it’s not important, but it’s because we’re at the point in our conversations where we’ve handed the issue over to our lawyers.” – stated U.S. Trade Representative Katherine Tai in a joint press conference with U.S. Secretary of State Anthony Blinken, Mexico Secretaries of Economy and Foreign Affairs, Raquel Buenrostro, and Alicia Bárcena, respectively.
- “Perhaps
through the experience obtained in the 10 [Rapid Labor Response Mechanism] cases resolved to date, we can develop a protocol that, once implemented by companies, cannot be arbitrarily challenged.” – said Alicia Bárcena, Mexican Secretary of Foreign Affairs during the U.S.-Mexico CEO Dialogue.
- “There
is presently an acute and immediate need to construct physical barriers and roads in the vicinity of the border of the United States in order to prevent unlawful entries into the United States in the project areas.” – stated Alejandro Mayorkas, U.S. Secretary of Homeland Security in an official filing in the Federal Register.
- “A
respectful recommendation […] is that they care for their youth by guaranteeing three things: study – that schooling is free in the United States –, employment, and love, so that they do not use fentanyl. That is what they should be doing, not blaming us. We are helping them every day for humanitarian reasons.” – declared Mexican President López Obrador in one of his daily morning press conferences.
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