The Impact of USMCA on U.S. – Mexico Trade Relations

On June 19, 2019, the Meridian Corporate Council partnered with the U.S. -Mexico Foundation and 3M to host a breakfast featuring Minister Jorge Alvarez, Finance Ministry Representative at Embassy of Mexico and Mr. Emilio Cadena, President and CEO of Grupo Prodensa. With the United States-Mexico-Canada Agreement (USMCA) weighing on all three countries, trade relations between the U.S. and Mexico are of paramount importance. Despite President Trump’s recent threat of imposing tariffs on Mexico, Mexico emerged as the main trading partner of the U.S., for the first time this quarter - outpacing China. The U.S., Mexico, and Canada all produce together, and our continued trade support is vital for future growth.

The USMCA is essential for Mexico to reassure Mexican citizens and investors of economic stability moving forward. Shortly after the breakfast on Wednesday, it was reported that Mexico became the first country to pass the USMCA. The vote passed 114-4 in the Mexican Senate with very little opposition. Now, the rest of the world awaits as the focus shifts toward the United States and Canada to pass the free trade agreement.

Although the free trade agreement passed with a vote of 114-4, Mexican politicians, investors, and citizens remained concerned that President Trump could have a sudden change of heart. Undoubtedly, the U.S. and Mexico play a large role in each other’s economies with approximately $1.7 billion in goods crossing the United States-Mexico border daily. Relations between the United States and Mexico have steadily improved in recent years, and the USMCA agreement can bolster this relationship further.

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