Mexico and the US conclude third round of trade negotiations on the T-MEC without agreements

The third phase of bilateral negotiations between Mexico and the United States regarding the review of the T-MEC concluded on Thursday without agreements, amid the turmoil generated by Washington's announcements of a 50% tariff on Canada and new levies ranging from 10% to 12.5% on 60 countries.

In a scenario fraught with uncertainty, negotiation teams from both countries met between Tuesday and Thursday in Mexico to advance discussions that have been ongoing since May on various topics: rules of origin, economic security, agriculture, and the automotive industry, which are some of the key points of the conversations.

The strategy of both countries diverges: while Washington prioritizes the protection of its industry despite the inflationary impact on American consumers, Sheinbaum's government focuses its efforts on reducing the 10% tariffs on Mexican products not covered by the T-MEC and the 25% tariff on medium and heavy trucks. Additionally, there is a 50% levy on steel and aluminum and a 17% countervailing duty on Mexican tomatoes that remain in effect.

In light of the new round of tariffs announced by the Trump administration, Mexican Secretary of Economy Marcelo Ebrard stated that the decision does not represent a change for Mexico since the 10% levy that has been applied since last year to Mexican products not covered by the T-MEC remains in place.

Furthermore, through a video shared on social media, Ebrard affirmed that the announcement "does not affect or change the position we had until now."

During this third phase, negotiators continued to make progress on central issues such as steel, aluminum, strategic sectors, strengthening supply chains, and replacing imports from Asia, the Mexican Secretariat of Economy reported in a statement on Thursday.

It is important to note that the next round of bilateral negotiations is scheduled to take place in the first half of September.

Despite not having made progress on concrete agreements, Ebrard preferred optimism: "We continue to advance in our conversations and trying to bring closer the positions of what the United States is seeking with what Mexico is looking for, based on what is common to us: economic integration."

Thursday's session included the presence of Jamieson Greer, who met with Sheinbaum at the government palace before the negotiations to discuss bilateral agreements and the status of the T-MEC review. It is worth noting that this review, which began on July 1, was complicated from the start by Washington's refusal to automatically extend the treaty's validity for 16 years, which activated the mechanism for annual reviews until 2036.

In her usual morning conference, Mexican President Claudia Sheinbaum ruled out that security issues and other bilateral matters would be included in the T-MEC review, indicating that negotiations would focus entirely on trade issues.

However, this could lead to conflict, as Greer stated in the U.S. Senate that it would be difficult for Trump to accept a renewal or review of the T-MEC if Mexico does not cooperate on key issues such as the 1944 bilateral water treaty and security.

Greer also indicated that over the next five months, progress is expected on the rules of origin of the treaty, which is one of Washington's main concerns, as well as labor and environmental standards.

Trade tensions are not the only open front between the two countries. In recent months, Mexico has also faced strong pressures from the U.S. regarding security and migration that have complicated bilateral dialogue.

This month, the Mexican government escalated its demands regarding the deaths of 17 Mexicans and requested that U.S. state prosecutors investigate the cases of migrants who died in ICE custody or during operations by that agency.

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