The director general of COMCE (Mexico’s Foreign Commerce) Fernando Ruiz Huarte informed the press recently that the Mexican government has provided strong and attractive suggestions related to the North American Free Trade Agreement (NAFTA) renegotiations.
He did not elaborate on the specifics of Mexico’s suggestions, but he stated, “It is not that Mexico ceded. Mexico would have liked to have maintained the present origin rules, but what we have done is developed formulas that meet both of our interests.”
Huarte noted that the recommendation was “seen as positive by many in the industrial sector in Mexico.” Without providing details, he said that probably some changes and modifications will be made to the present 62.5 percent origin requirements for the auto industry. Huarte stated that the US has shown flexibility in the discussions and has removed requirements for equal compensation in the industry and has been open to a 70-75 percent regional origin level.
Huarte surprisingly expressed that the Mexican private commerce sector hopes for final negotiations in the next few weeks. He said, “Yes, I hope for prompt signatures. The three countries are showing political resolve and have accelerated the technical elements necessary for the various articles under negotiation. We hope for successful resolutions in a timely manner so that that we can each send to our respective congress bodies.”
This week Mexico also announced a successful trade agreement with the EU. Additionally, immigration language within the final NAFTA agreement was suggested by US President Trump but it is uncertain whether he will press to include.