IP and government will adjust procedures for renegotiation of the USMCA

The Cuarto de Junto (Third Quarter) represented by the private sector in Mexico and the federal government will define new procedures for the renegotiation of the USMCA this Tuesday. This process will address the feasibility of starting with sectoral dialogue rather than chapter-by-chapter consultations, as previously conducted.

Following the imposition of tariffs, some of the interests of specific sectors have changed, yet to be resolved within the United States-Mexico-Canada Agreement (USMCA). Therefore, Marcelo Ebrard, Secretary of Economy, stated: "We are going to agree on how the review process will be; it's still early days... We are going to seek to be more inclusive and adequately consult with the sectors involved."

He explained that the review of the agreement, not necessarily the same as that conducted with the North American Free Trade Agreement (NAFTA), will be conducted sector by sector this time. During the 2017 and 2018 negotiations, semiconductors were not part of the discussion, and their growth will be encouraged.

The country's goal is to consult with all productive sectors and define the formula based on the system to be followed starting in January; although, he clarified, the issue of the 90-day period will first be reviewed to avoid tariffs.

"There's a change in the economy that you have to reflect in what you're going to do. Maybe there aren't any large companies (in semiconductors or other areas), but we want to be there," Ebrard said.

In this regard, Francisco Cervantes, president of the Business Coordinating Council (CCE), reported that a meeting of the Joint Meeting will be held this Tuesday with the government to review the issues and provide training on how the USMCA discussion will proceed.

He added that it will be a technical meeting with participation from sectors such as automotive, steel, aluminum, copper, agriculture, and others.

"On Tuesday, we will define the sectoral part," said Francisco Cervantes, although he clarified that some relevant chapters will remain open; the consultation process leading up to the negotiations has changed by priority sectors.

Since November 2024, the CCE has defined the Cuarto de Junto (business group that will accompany the federal government in the USMCA negotiations), which includes the 34 leaders of the chapters to be reviewed. However, given the tariff pressure, they will be defined by sector, either by relevance or sensitivity.

Plan Mexico seeks to increase the domestic content of six strategic sectors by 15%: automotive, aerospace, electronics, pharmaceuticals, chemicals, and semiconductors.

“Made in Mexico” Campaign

Last Friday, the CCE and the federal government launched the "Made in Mexico is Better Made" campaign to strengthen the domestic economy, where more than 2,000 companies in the country already have the Made in Mexico seal.

Secretary Ebrard explained that this effort seeks not only to promote national products but also to raise awareness about the importance of supporting the local economy. Every time we choose a product made in Mexico, we are contributing to employment and the development of our families.

"Every peso spent on domestic products translates into more jobs, more investment, and greater well-being. Investing in Made in Mexico means strengthening small and medium-sized supplier companies, consolidating productive chains, and multiplying benefits in every region of the country," emphasized the president of the CCE.