In a letter addressed to the United States Trade Representative, Katherine Tai, the members of the US Senate Finance Committee detailed points of commercial tension with Mexico and Canada that could result in disputes arising from the letter of the T-MEC.
“We are still concerned that Mexico and Canada continue to ignore their obligations within the T-MEC It is crucial that the Office of the Trade Representative [USTR] continue to diligently monitor Mexico and Canada’s compliance with the agreement and ensure that each of the chapters is complied with,” the letter states.
Nine of the twelve alleged violations included in the list are from Mexico. These cover issues ranging from labor and energy reform, to sustainable fishing and national quotas for audiovisual content.
On the labor issue, the US senators warned that it is necessary to continue closely monitoring the implementation of the labor reform in Mexico, adding that it is necessary to monitor forced labor practices in the country, especially in the
field.
For the agricultural sector, the Legislators pointed out breaches in access to potatoes of US origin and biotechnological agricultural products (transgenic). They also allege that the Mexican government maintains a “campaign against imported food products”, a reference to the various policies to reduce the consumption of junk food.
The energy sector also appeared as a point of potential tensions due to the turns in national politics brought by President Andrés Manuel López Obrador (AMLO). According to legislators, this policy seeks to unjustifiably favor State companies (Pemex and CFE) at the expense of market access and equal treatment for private companies.
In the sector services, accused that the national quotas of audiovisual content for streaming platforms contravene the letter of the T-MEC .
Other issues that mortify the members of the Senate are: the non-compliance by Mexico in its sustainable fishing commitments; the possible disappearance of the Federal Telecommunications Institute (IFT) as a regulatory entity; and the postponement of permits for the access of pharmaceutical products.
Several of the points indicated in the list were included in the most recent Report on Barriers to Trade of the USTR, which perceives other issues of potential conflict with Mexico, such as the prohibition of glyphosate and new provisions for electronic services of payment.
EU dissatisfied with commercial partners
A year and a half after the implementation of the T-MEC, the US has already activated two labor disputes against Mexico and emerged victorious in a panel of settlement of disputes against Canada. The Mexican and Canadian governments each requested panels against the US, and it is possible that at least one more will be activated this year.
“By the time the T- MEC, there are already many [paneles], and there are many more topics And what is being seen is that they are not touching their hearts to activate them”, Gustavo Uruchurtu, an expert lawyer in foreign trade, commented in an interview.
Although the T-MEC panels arise from disagreements between the signatories, they function as a mechanism to resolve disputes and avoid the outbreak of severe trade retaliation.
With the World Trade Organization (WTO) practically paralyzed in the area of dispute settlement, the treaty is currently emerging as the best option in North America to settle these disputes.
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