By Kylie Madry
MEXICO CITY (Reuters) – Mexico is doing everything it can to protect a regional trade deal with the United States and Canada, the Latin American country's deputy economy minister said in a published interview Friday.
The three neighboring countries, and main trading partners, entered into a trade fight after US President-elect Donald Trump threatened to impose tariffs on countries to the north and south if they did not crack down on drugs and migrants entering the United States.
Mexico is working on both issues in order to “come to the table” to negotiate without obstacles, Luis Rosendo Gutierrez told Inside US Trade.
Since Trump's tariff threat, Mexico has launched a crackdown on smuggled goods from Asia entering the country, and authorities have seized a record amount of fentanyl. They also arrested thousands of migrants, vowing to prevent them from reaching the north.
Mexican officials have been in contact with Trump allies, Gutierrez added, although they have not met with the new administration officials. The exception is Jamieson Greer, Trump's trade representative, whom Gutierrez met before his nomination.
Trump, along with some U.S. industry leaders, have accused Mexico of being a “back door” for Chinese goods and investments, something Mexico has denied.
SELECTED INVESTMENTS
Mexico, however, is seeking inspiration from the United States in screening investments coming into the country, Gutierrez said. Mexico is seeking to develop a process similar to that of the U.S. Committee on Foreign Investment, he explained.
Asked if this would affect Chinese automaker BYD's (SZ:) plans to build a factory in the Latin American country, Gutierrez said Mexico wants to “play by the same rules” as its trade allies .
Trump had threatened to impose 100% tariffs “on every car crossing the Mexican border” in response to BYD's plans, although the automaker has repeatedly said its factory will serve the local market and not that of UNITED STATES.
Mexico is considering offering incentives to attract manufacturing investment, Gutierrez said, suggesting Mexico could produce batteries that the United States wants to make regionally.
CORN COMPLICATIONS
Mexico is also awaiting the outcome of a panel under the USMCA trade deal regarding Mexican restrictions on imports of genetically modified corn.
Mexico will comply with the panel's decision even if it is unfavorable to the nation, Gutierrez said. And depending on the outcome, Mexico will evaluate whether to make changes to a proposed constitutional reform that would ban the use of genetically modified corn for human consumption, the official added.
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