US Business Community Proposes Parallel Security Agreement Alongside T-MEC Review
The American business community operating in Mexico is advocating for a parallel security agreement as part of the ongoing review of the United States-Mexico-Canada Agreement (USMCA), also known as the Treaty between Mexico, the United States, and Canada (T-MEC). This proposal comes with a warning that the trade pact could potentially become a bilateral agreement between the US and Mexico, excluding Canada.
Potential for Bilateral Shift
Larry Rubin, President of the American Society of Mexico (AmSoc), stated there is a significant possibility – estimated at 40% – that the USMCA could evolve into a bilateral arrangement between Mexico and the United States. However, Rubin acknowledged this outcome is feasible despite the legislative complexities it would entail and competing priorities within the US political agenda. The Business Year reported this assessment in May 2024.
Prioritizing Investment Security
The primary focus of the private sector is to establish legal certainty for investments, particularly within capital-intensive industries such as energy, manufacturing, and technology. Strengthening North American supply chains is also a key objective. Rubin represents two million Americans living in Mexico, as well as American businesses and NGOs. American Society of Mexico
Addressing Security Concerns
While acknowledging “spectacular advances” in Mexico’s security situation, Rubin emphasized that decades of accumulated challenges signify progress is only “touching the surface.” This has led to the proposal for a separate security agreement alongside the T-MEC.
Streamlining the Review Process
The proposed parallel agreement aims to address security concerns independently from the trade agreement, with the goal of streamlining the review process and preserving the existing trilateral framework. Key objectives include reducing extortion and robberies on federal highways, and strengthening collaboration with the United States to protect productive chains and employment.
Modernizing Trade Agreements
Rubin stressed the importance of maintaining free trade conditions, including zero tariffs in sectors like steel, and modernizing chapters related to digital commerce, financial services, and technology.
Strategic Sectors for Bilateral Growth
The automotive, semiconductor, steel, and energy sectors were identified as crucial for deepening the bilateral relationship. Rubin argued that North America needs to reduce its reliance on other regions, particularly given the current international context and disruptions in the energy market.
Mexico’s Energy Sector Potential
Rubin highlighted a “great opportunity” for Mexico to open its energy sector in a way that benefits the country and attracts long-term private investment, potentially making it “the jewel in the crown.”
Political Calendar and Expedited Review
The US political calendar, including the upcoming midterm legislative elections, is adding pressure to seek a more efficient path forward in the T-MEC review process.
Leadership of the American Society of Mexico
Larry Rubin serves as the President of the American Society of Mexico, working closely with the U.S. Ambassador to Mexico, who holds the title of Honorary President. American Society of Mexico Leadership. Jill Metcalfe and Glenn Hamer serve as Vice Presidents, bringing expertise in international trade and business representation, respectively.