Mexico requires an expert negotiator: analysts

The Mexican government requires an expert negotiator because the country faces important and urgent challenges in the field of international trade negotiations, said specialists consulted.

Of all the ongoing negotiations, the beginning of the dispute settlement process requested by the United States and Canada against certain energy policies of Mexico in the framework of the free trade agreement between the three nations (T-MEC) stands out.

A specialist who requested anonymity defined this case as “an elephant in the room”, due to the amount of damages outlined, for some 30,000 million dollars only in the case of the United States, as well as due to the breadth of the legislative changes to reverse at various levels of Mexican law, considering the petitions of the plaintiffs.

Beyond the occasional circumstances, Mexico requires a strong negotiating team and a highly capable team leader because its main trading partner is the United States, an economic power that consequently has vast material resources, high sophistication in international treaties and a tradition profound legal

In general, the main technical negotiator of the Mexican government falls on the head of the Undersecretary of Foreign Trade of the Ministry of Economy, a position that Luz María de la Mora has held since December 2018, but who was asked to resign this Thursday, according to the main media outlets in the country, without the news being confirmed or denied by the federal government.

“The official who comes to occupy said Undersecretary must have a great willingness to work with us, in the American Society, with foreign investment, with the governments of the United States and Canada, as well as a great knowledge of the T-MEC and binational trade. Mexico-United States, since it represents the largest foreign investment in the country,” said Larry Rubin, president of the American Society.

According to the experts consulted, the profile of the Undersecretary of Foreign Trade must include extensive knowledge of the matter, be well advised legally and be conciliatory, beyond the fact that tough positions are strategically required in certain circumstances.

The federal government must consider high demands for this position considering the economic importance that international trade and the ongoing negotiations of new treaties have for Mexico, in addition to adequately administering and operating current treaties and international relations linked to trade flows and investments.

Among its pending issues is the ratification of the modernization of the Free Trade Agreement between the European Union and Mexico (TLCUEM); the negotiations of a Free Trade Agreement (FTA) with the United Kingdom and the entry of this European country into the Comprehensive and Progressive Agreement for Trans-Pacific Association (TIPAT).

At the same time, Mexico is negotiating another FTA with Ecuador and negotiations are underway for South Korea’s entry into the Pacific Alliance as an associated state. In addition, on March 1, 2022, Mexico and South Korea agreed to start negotiating an FTA.

Meanwhile, the Pacific Alliance continues with the process of trade negotiations with Australia, Canada and New Zealand.

roberto.morales@eleconomista.mx