Mexican steel association, Canacero, has welcomed this week a decision by the three North American countries to move forward with a revised USMCA agreement. The US, Mexico, and Canada signed the revised USMCA agreement on December 10, 2019, in Mexico.
The revised deal includes origin rules for steel products used in the automotive industry and sets new dispute settlement mechanisms.
“We’re convinced the USMCA is a fundamental piece to achieve the inclusive growth and the jobs Mexico requires,” Canacero said in a statement.
“As an industry, we are attentive and ready to work with the supply chain to develop the competitive regional supply (of products) to support the USMCA,” Canacero added.
Mexican negotiator Jesus Seade said the revised deal will allow Mexico to “adjust” itself to the new rules, as the countries will have a seven-year timeline to increase their North American content in the automotive industry.
“The steel will be cast in the region … and there’s a timeline (to do so). It was better not to have such a condition for the Mexican industry, but we were given a timeframe to adjust (ourselves). So, some outcomes are reasonable,” he said.
US Secretary of Commerce Wilbur Ross said the USMCA continues to “gain momentum.”
“Leaders from Canada, Mexico, and our own congressional members have all now voiced strong support. I am encouraged by these developments and look forward to more voices every day confirming what we already know: that the USMCA will further American prosperity, create more American jobs, and fuel economic growth in communities across the continent,” Ross said.
The USMCA is yet to be formally ratified by all the legislative bodies of the three countries.