Mexico is working closely with U.S. Trade Representative Robert Lighthizer to cl...
MEXICO CITY - Mexico is working closely with U.S. Trade Representative Robert Lighthizer to close a loophole in the new North American trade deal, aimed at satisfying demands of U.S. Democratic lawmakers for tougher labor and environmental provisions, a senior Mexican official said.
Mexico’s deputy foreign minister for North America, Jesus Seade, said the proposal he was working on with Lighthizer was focused on closing a loophole in the trade deal’s dispute resolution mechanism. Seade said as the deal now stands, the United States could start a formal trade dispute if Mexico was exporting a product made under labor conditions it considered unfair and contrary to the rules in the pact. However, he said, a loophole meant Mexico could theoretically block a dispute panel from being created.
Seade said Mexico did not want to, and was not going to, re-open USMCA. Instead, he said, the gap could be closed through supplementary measures, “to make sure that if the United States government wants to initiate a panel against Mexico on labor standards,” it can do so.Last week, senior U.S. Democratic lawmaker Earl Blumenauer said Canada and Mexico may be open to a limited renegotiation of aspects of the agreement to satisfy U.S. lawmakers’ concerns.
Asked whether Canada would work with Democrats to include new guarantees, the source, who requested anonymity given the sensitivity of the situation, replied: “No, we are not looking to do that.”
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