Ser Empresario Magazine in audio

Sofia Espinosa

Ser Empresario Magazine Season 308 Episode 18

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Negotiating the USMCA in a Complicated Political Context. By Sofia Espinoza Yescu. Since U.S. President Donald Trump returned to the White House, relations between Mexico and the United States seem to hang by a thread. I'm not just referring to political issues but also to economic ones. The USMCA is arguably the most important trade agreement Mexico is a part of, and now we risk being snubbed by our main trading partner. But why? The current international geopolitical and economic context is very different from the one that existed when the USMCA came into effect in 2020. In this article, we will focus primarily on the dynamics between the United States and Mexico, but we must not forget that Canada is also part of this treaty. Many things have changed. For a long time, the word globalization was fundamental, something presidents included in their economic policies. Now it seems that globalization has been sidelined, and countries are focusing on implementing nationalist economic policies. An example of this is the United States, where President Donald Trump has prioritized improving its domestic economy, neglecting other countries by implementing the use of tariffs. Furthermore, the constant attacks and interference by the U.S. government against Mexico have increased. The United States was angered by the approval of the judicial reform, just as it is currently angered by the Mexican government's alleged lack of will to confront the fentanyl and drug trafficking crisis. Our neighbor is not happy with the current government, and it shows. In recent years, it has revoked the visas of several politicians from the Mourina Party and recently formally accused various Mexican politicians of collaborating with organized crime. Furthermore, we cannot forget that the United States designated Mexican cartels as international terrorist organizations, something that seemed to upset the Mexican government. The United States also indicated that it will review Mexican consulates in the United States. To add to the situation, a few days ago the news of Honduras Gate came out, in which the governments of Israel, Honduras, and the United States allegedly wanted to create disinformation about several left-wing governments in order to destabilize them, including that of Mexico. Given all this, it's unlikely that the treaty review won't be influenced by these events. It's possible that the U.S. government will pressure Mexico on security issues to ensure the review's success. It's also possible that the Mexican government might not want to appease the U.S. government and might prioritize its own interests. Right now we can't be certain, but what we can be certain of is that this review will take place under unprecedented conditions and circumstances. Let's hope diplomacy helps both sides because if something goes wrong with the USMCA review, the affected parties wouldn't just be the Mexican government, but all of us.