Comply with the commitments of the T-MEC, ask the governments of the business organizations of North America

One day before the start Summit of North American leaders in Mexico City, the three main business organizations in the region called to guarantee security for companies and the rule of law; strengthen democratic institutions, ensure certainty for business and meet shared commitments of the T-MEC. Through a letter, they described the aspects they consider to be a priority to take advantage of the global situation and position North America as the most competitive region on the planet.

Energy appears as one of the main points of the statement signed by the Business Coordinating Council, the Business Council of Canada and the US Chamber of Commerce from United States. They ask for a transition plan that guarantees the access to electricity y fuels clean and reliable at competitive prices, “that allow investors to meet their business objectives, as well as their global environmental goals.”

The stability and predictability of the rules of the game is also a relevant issue in the letter. It is mentioned in the eighth paragraph of the letter, released on Sunday morning, January 8. It calls on governments to work together to develop strategies that “strengthen the rule of law, ensure certainty for business, and adhere to global best practices for transparency, predictability, accountability, and due process.”

In the proposals made by business organizations there is no direct mention of any of the countries, although from the context and between the lines it is possible to deduce that the concerns related to the energy transition plan and the stability of the rules of the match.

The letter consists of eleven paragraphs. In it, the CCEthe Business Council and the US Chamber of Commerce They ask to work on a quick resolution of the controversies in energy, automotive rules of origin and tariff quotas for dairy products. The energy controversy has the Mexican government on the bench; that of automotive rules of origin to the United States and tariffs on dairy products, to Canada.

Additionally, they ask that the possible prohibition of genetically modified corn be resolved through “dialogue and cooperation”. This issue has been put on the table by the Mexican government and if there is no agreement, it could enter into force in 2025. This would affect some value chains, mainly in the agri-food sector and would substantially change the volume of trade between Mexico and the United States. States valued at about $17 billion annually.

As part of measures to strengthen the North American region, business organizations are calling for the establishment of a sub-committee that would operate in emergency situations to maintain, restore or address cross-border trade issues.

This subcommittee was agreed upon at a meeting in Vancouver of the T-MEC free trade commission and reflects the importance of not repeating situations like those experienced in 2020, in the first months of Covid, where there were different ways of addressing the operation of value chains. In Vancouver, the need to create a working group to have a shared understanding of critical infrastructure in North America was also raised.

kg