Dear Members and Friends:

The month of July was filled with webinars and sessions associated with the first anniversary of the USMCA. Although there were cheers, there was also the realization that challenges lie ahead and that the agreement is a work in progress.

In particular, the Wilson Center’s Mexico Institute has done many sessions on the USMCA from the beginning of negotiations until now. Their recent webinars have provided two reports. One is “USMCA and North America: Year One” by former Ambassador Earl Anthony Wayne. In the report Wayne indicates, “The lasting impacts of these changes are not yet clear, but throughout the last year, both private sector and government officials made clear that they see the great value of having the certainty provided by a clear set of rules and processes that will govern North America’s commerce until at least 2036.”

The other report, “A Winning Bet: The USMCA at One Year,” by Andrew Rudman and Chris Sands, mentions that, when the new USMCA Trade Commission met for the first time on May 17-18, 2021, U.S. Trade Representative Katherine Tai, Mexican Secretary of the Economy Tatiana Clouthier Carrillo, and Canadian Minister for Small Business, Export Promotion, and International Trade Mary Ng met virtually rather than in person. In fact, almost all of the negotiating sessions between the three countries were held via phone calls, video chats, and email. Nonetheless, the three trade representatives did meet face-to-face following the first-year anniversary in Mexico City, as the photo below attests.

On a somewhat negative event that took place, Trade Promotion Authority (TPA), otherwise known as “Fast Track Authority,” expired on July 1. It is unlikely that President Biden will prioritize the reauthorization of TPA as his campaign released no plans to negotiate new trade agreements as a part of its platform. However, this could change depending on ongoing reviews of trade negotiations in process by USTR Katherine Tai.

On the supply chain front, Alix Partners released a report, “Revisiting Mexico: A Critical Link in the Supply Chain,” which looks at four areas of interest: proximity and access; cost; resources and infrastructure; and business environment. Alix Partners concludes that “Its value has only grown since the advent of the COVID-19 global pandemic because rising labor costs in China and increasing awareness of the risks inherent in long supply chains have led companies to seek more resiliency and agility. Solid infrastructure, geographic proximity, and relatively low costs make Mexico a prime location.” Good details in the report cement those conclusions.

Bruce Stokes of the German Marshall Fund, presenting at a session of the Canadian Global Affairs Institute in late July, provided a report (here) on “Americans’ Views of Their Role in the World: Implications for the Biden Era.” The report, much based on research by the Pew Research Center, looks at Americans’ view of the world, countries of the world, and issues facing us. It also covers what others in the world think about us. Very interesting details—especially those charts showing trends in positions and views over time.

On July 9, President Biden issued Executive Order (EO) 14036, “Promoting Competition in the American Economy.” The White House issued a lengthy fact sheet on the EO, which includes 72 initiatives by more than 12 federal agencies aimed at addressing competition issues across the economy and different industries. However, the law firm of Thompson Hines provides a nice summary of the EO (here), which establishes a new White House Competition Council to coordinate the White House response to anticompetitive behavior, as well as various deadlines for agency response. The summary concludes that the EO is a significant pronouncement of the Biden administration’s position on competition matters and business practices generally.

On the other side of the Atlantic, although initiated by the UK following the Brexit agreement at the beginning of this year, the government has just released a report on “UK Accession to CPTPP: The UK’s Strategic Approach.” The UK currently has free trade agreements with seven of the CP-TPP members, but becoming part of the CP-TPP could add additional benefits to those provided by the FTAs. Accession could see 99.9% of UK exports being eligible for tariff-free trade with CPTPP members and increase trade in services with the UK being the second largest services exporter in the world. The report is very detailed on the desired accomplishments of accession and provides negotiating goals and objectives.

We hope you have been attending our webinars. We have had six thus far, with the last three co-hosted by the Consulate General here in Chicago. Our planning includes another four on Aerospace, Appliances, Supply-Chain, and Clusters.

In the meantime, please look at our Webinars page at our website, www.usmcocma.org.

Ralph Biedermann
Executive Director
U.S - Mexico Chamber of Commerce, Mid-America Chapter