Saturday, June 15, 2024

Business group forecasts 50% increase in exports with new trade accord

A leading business organization issued a strong vote of approval today for the new NAFTA, forecasting that Mexico’s exports to the United States and Canada would grow 50% in the next 10 years.

The Business Coordinating Council (CCE), an umbrella organization of several business groups, said the new United States Mexico Canada Accord, or USMCA, is more robust, more modern and more agile, which will allow trade to multiply between the three countries.

The agreement was finalized last night and will replace the North American Free Trade Agreement.

CCE president Juan Pablo Castañón said in a telephone conference call the growth in exports will fuel employment and diversification in the production of Mexican products.

He cited three sectors that would lead the growth: food products, automotive and aerospace.

“. . . with the foundation of those three sectors of the economy, along with investment in energy, we are certain that we can grow our trade with the U.S. and Canada by at least 50%.”

One sticking point that was not resolved with the new trade accord were the tariffs imposed by the U.S. on steel and aluminum imports from Mexico and Canada, which U.S. President Donald Trump said today would remain in place for the time being.

But Castañón said the tariffs would be the subject of discussions this week. “This is now on the table . . . and conversations will begin this week to lift the imposition of these taxes on steel and aluminum, and on food products on Mexico’s part; we hope to have an announcement to make on the issue this week.”

Although many details of the USMCA have yet to be subject to outside analysis, it has been broadly welcomed for the fact that it ends more than a year of uncertainty for business and investors.

Source: Milenio (sp)

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