Comce warns of US retaliation in case of failure of the energy panel in the T-MEC

The Mexican Business Council for Foreign Trade, Investment and Technology (Comce) indicated that he sees risks that USA punish with tariffs on Mexican exports of pick ups y tractor trucksin the event that the energy panel is lifted and that country wins it.

One of the reprisals that is being talked about in the corridors is precisely against these products, in addition to the agri-food sector,” said Fernando Ruiz Huarte, general director of Comce, at a press conference on Tuesday.

Las US customs charge a 35% tariff on imports of pickup trucks and 20% on tractor trucks from Mexico.

In 2021, Mexico exported automobile vehicles for the transport of merchandise with a total weight with a maximum load of less than or equal to five tons (including pick-ups) to the United States for a customs value of 18,695 million dollars and trucks in the same direction for 7,684 million.

However, Ruiz Huarte said that for these reprisals to occur, the consultations that the United States, Mexico and Canada are currently conducting on the case within the framework of the T-MEC.

“We hope that the consultations will continue and come to a successful conclusion,” he commented. “The consultations will continue as long as progress is seen.”

Economy Secretary lists meeting with EU representatives

Among other issues, to address the energy difference, this Thursday Raquel Buenrostro, the new Secretary of Economy of Mexico, and Katherine Tai, trade representative of the United States, will meet this Thursday, according to a program of the US government.

Another bilateral meeting was held, as was also scheduled, between the Deputy United States Trade Representative, Jayme White, and the Deputy Secretary of Foreign Trade of MexicoAlejandro Encinas Nájera.

This last dialogue was private and nothing was officially disclosed about the prevailing situation or progress in the matter.

In the middle of last October, Buenrostro replaced Tatiana Clouthier as Secretary of the Economy, and Encinas Nájera replaced Luz María de la Mora as Undersecretary of Foreign Trade, just at the stage of consultations between Mexico and the United States to determine whether or not to lift the dispute resolution panel on energy policies.

On July 20, 2022, the United States requested consultations with Mexico under the Dispute Settlement chapter of the T-MECarguing that several Mexican energy policies violate this agreement, favor Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE) and negatively affect US companies operating in Mexico and the energy produced in the United States. Canada then submitted its own application.

If the dispute is not resolved through consultation within 75 days, the complaining parties may request the establishment of a dispute settlement panel to review the measures in question and potentially authorize retaliatory actions. That term expired on September 30.

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