Top Mexican Trade Official Says Change in Mix of US Tariffed Products to Be 'Wake-up Call'

The U.S. Section 232 tariffs on steel and aluminum should be lifted as soon as possible, Mexico's Undersecretary for Foreign Trade Luz Maria de la Mora said on Feb. 15. "Mexico is not a national security threat to the United States," De la Mora said while speaking at a think tank. Mexico can cooperate with the U.S. in monitoring customs, avoiding transshipment and policing tariff evasion, "all the things that are concerns to the industry and are legitimate concerns," she said.

The undersecretary said that Mexico imports more steel and aluminum than it exports, and it makes no sense for it to be targeted by the tariffs. The new Mexican administration is reassessing the U.S. products currently targeted with retaliatory tariffs, and different steel products and agricultural products will go on the list, while others will come off, "in the next couple of months," she said. "It's a wake-up call," she said of the carouseling of tariffs. "That's what we want to make this."

De la Mora also talked about the implementing bill under consideration in the Mexican Senate, which would make a constitutional amendment on labor rights a reality (see 1809280038). De la Mora said such changes are a priority for President Andres Manuel Lopez Obrador even without a revised NAFTA, because one of his top goals is to improve the lives of workers, including raising their wages. In terms of workers' rights, labor justice and collective bargaining, the legislation "really changes 180 degrees from where we are, to where we want to be," she said. She said that there will be an independent body monitoring contract revisions, guaranteed free elections of labor leaders, collective bargaining rights, and that the enforcement of labor law will move from the executive to the judiciary branch. "The expectation is, with this reform, workers will be in a better position to bargain," she said. She said she hopes the law will pass by the end of April, when the Senate's session ends. The text of the new NAFTA says that U.S. ratification of the treaty depends on the passage of this law.

De la Mora acknowledged there are criticisms of the pact. "Perfection is the enemy of progress," she said. "This is the agreement that was possible." Even if the agreement is not yet ratified, de la Mora confirmed that the side letter on Section 232 tariffs -- which protects Mexican auto parts and autos that don't meet the rule of origin -- will be in force if auto tariffs are raised.

Outside of the new NAFTA, de la Mora briefly touched on the recent action by the Commerce Department to begin investigating the dumping of Mexican tomatoes (see 1902070024). "We feel that's going to create a problem in the market," she said, adding that Mexico wants to continue to work with the U.S. on the issue.