Mexico Escalates Showdown With U.S. Over Trade Rules Enforcement
Mexico Escalates Showdown With U.S. Over Trade Rules Enforcement
(Bloomberg) -- Mexico called on the U.S. to modify legislation under which it would send so-called labor attaches to monitor enforcement of USMCA trade deal rules, saying that it wasn’t consulted.
If it doesn’t, Mexico said it will no longer consult the U.S. when it drafts its own implementation rules, Foreign Affairs Minister Marcelo Ebrard said.
A showdown is escalating between the two countries over a bill in the U.S. Congress about implementation of the USMCA, or United States-Mexico-Canada Agreement. The bill authorizes up to five labor attaches to ensure that its southern neighbor guarantees workers their right to union representation.
Enforcement of union rights has been a key priority for Democrats in the U.S. Congress.
A spokesman for the United States Trade Representative didn’t respond to a request for comment.
Mexico will decide whether it authorizes U.S. labor attaches to operate in its country, after meetings today between U.S. and Mexican negotiators, Ebrard said. He said he also wants to meet with U.S. Secretary of State Mike Pompeo on the matter.
In any event, attaches wouldn’t be allowed to visit establishments in Mexico to monitor labor activity, he said.
However, the U.S. implementing bill can’t be amended or changed in any way under the rules of the Trade Promotion Authority. The House Ways and Means Committee is reviewing the bill for approval so it can move to the House floor for a vote later this week.
Deputy foreign minister Jesus Seade criticized the U.S. for not consulting Mexico on the question of the attaches and is meeting with U.S. officials today to discuss it.
“Very politely, we will say that we won’t consult them in implementing laws if they don’t modify this,” Ebrard said. “Equal treatment, full reciprocity.”
Ebrard said the USMCA accord isn’t at risk over the dispute.
--With assistance from Jenny Leonard.
To contact the reporters on this story: Nacha Cattan in Mexico City at ncattan@bloomberg.net;Lorena Rios in Mexico City at lriost@bloomberg.net
To contact the editors responsible for this story: Daniel Cancel at dcancel@bloomberg.net, ;Juan Pablo Spinetto at jspinetto@bloomberg.net, Matthew Bristow
©2019 Bloomberg L.P.