Chinese investors likely to keep USMCA benefits despite China-US rivalry: Mexican envoy
North American trade rules may tighten but country-specific restrictions unlikely, Mexican diplomat says
Chinese-funded factories in Mexico are “very unlikely” to be excluded from preferential treatment under the United States-Mexico-Canada Agreement (USMCA) despite the free trade deal being up for review next year, a Mexican envoy said on Thursday.
“There is no indication that there are going to be restrictions targeting Chinese companies,” David Trujillo, deputy commercial counsellor at the Mexican Embassy in China, told the Post on the sidelines of the China International Supply Chain Expo.
Beijing has also warned other countries against reaching trade deals with the US that come at China’s expense.
However, Trujillo said revisions to the USMCA would likely focus on tightening rules-of-origin requirements – meaning companies would need to make more of their product locally to qualify – rather than introducing restrictions on specific countries.
“For key industries like the automotive industry, the requirement is now 75 per cent,” he added. “It might be higher.”