Renegotiation of USMCA

When asked about the upcoming renegotiation of the USMCA in July of next year, Carney said the bilateral agreement reached Sept. 18 “complements” USMCA and lead to overall strengthening of Canada, the United States, and Mexico. He said any chances for improvement to the agreement will be pursued by Canada.

Sheinbaum said she is confident the USMCA will “prevail” and be renegotiated with “goodwill” when the review comes up.

“Most of our trade with the U.S. is still tariff-free and that’s because it’s competitive for all three countries,” Sheinbuam said, adding she believes the review of USMCA will lead to results that are in the best interests of all of North America going forward.

On the related topic of whether Canada and Mexico developed a joint strategy to respond to U.S. tariffs following their Sept. 18 talks, Sheinbaum said Mexico is still exporting the majority of its products at a high level, as is Canada. However, she said looking for ways to enhance “competitiveness” will be sought through bilateral or trilateral meetings including “obviously” looking for a better deal regarding Mexican steel, which is subject to a 50 percent U.S. sectoral tariff, as is Canadian steel.

The United States imposed a 25 percent tariff on automobiles and auto parts imported from all countries, including Mexico and Canada, this past spring. However, vehicles and parts that comply with USMCA exemptions are not subject to tariffs. Sheinbaum and Carney said the priority will be in protecting this supply chain and working together with the United States to develop a solution in the best interests of all three countries.

Mexico recently put tariffs on Chinese-made automobiles and goods at the behest of the United States without receiving any concessions or benefits in return.

A planned North American leaders’ summit is not currently being planned, with the last one having taken place in January 2023 in Mexico City.

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