US-Mexico High Level Economic Dialogue to Begin
The U.S.-Mexico High-Level Economic Dialogue will convene today in Washington to discuss economic, security and development priorities.
Today’s summit comes as President Joe Biden and President Andres Manuel Lopez Obrador attempt to strengthen economic ties between the US and Mexico. Topics of discussion will include supply chain relocation, trade facilitation and border infrastructure. In 2019, US Treasury assessments suggested Mexico was the second largest trading partner and second largest export market of the US. Additionally, two-way trade in goods totaled $614.6 billion between the two countries.
Expect Mexico to raise concerns over the US interpretation of content requirements for the auto industry under the US-Mexico-Canada Agreement (USMCA) trade pact. Formal consultations were requested in August following continued disagreement. Mexican officials contend US rules will reduce competitiveness, increase costs and make the region less attractive to investment.
It is likely that talks will result in US concessions as the 75% North American content requirement will be reduced. The dispute comes as the USMCA resolution process swiftly resolved a labour dispute between countries last month. Long-term, the willingness of both countries to embrace diplomacy will likely lead to greater bilateral trade agreements that promote economic cooperation while addressing regional socio-economic issues.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.
