MEXICO CITY (Reuters) – Mexico is taking all necessary measures to protect a regional trade agreement with the US and Canada, its deputy economy minister, Luis Rosendo Gutierrez, said in an interview published on Friday.
The three neighboring nations and major partners in commerce have entered a trade tussle after US President-elect Donald Trump threatened to impose tariffs on the countries to the north and south if they did not clamp down on drugs and migrants coming into the US.
In response, Mexico has launched an offensive against contraband goods from Asia and seized a record amount of fentanyl. The country has also detained thousands of migrants, vowing to prevent them from reaching the US.
Gutierrez noted that Mexico has been in touch with Trump’s allies, although they have not met with incoming administration officials, except for Jamieson Greer, Trump’s chosen trade representative, with whom he met before his nomination.
Mexico is also considering developing a process similar to the US’ Committee on Foreign Investment to screen investments coming into the country, Gutierrez said. This move would help the country to “play with the same rules” as its trade allies, he added.
Regarding Chinese automaker BYD’s plans to build a factory in Mexico, Gutierrez stated that the country wants to “play with the same rules” as its trade allies.
Mexico is also awaiting the outcome of a dispute panel under the USMCA trade deal regarding Mexico’s restrictions on imports of genetically-modified corn. The country will comply with the panel’s ruling, even if it is unfavorable, Gutierrez said. Depending on the outcome, Mexico will weigh whether it must revise a proposed constitutional reform that would ban the use of GM corn for human consumption.