Mexico’s foreign minister rejects US new trade deal proposals on aluminium and steel production

On Sunday, December 8, Mexico’s foreign minister rejected the United States proposal for aluminium and steel production under the new trade deal, citing that it would leave Mexico at a disadvantage.

During a meeting with senators over details of negotiations for the United States-Mexico-Canada treaty (USMCA), Mexico’s Foreign Minister Marcelo Ebrard said the US proposed 70 per cent of steel for automobile production from the North American region. This, according to him, will put Mexico at a great disadvantage as cars produced in Mexico also use components imported from Brazil, Japan, and Germany.

Ebrard also said that Mexico would not accept any term for aluminium provisions either, as the United States has no resources to produce aluminium. He rather pointed out that Mexico is one of the world’s largest automobile exporters with multiple brands building facilities, such as that of General Motors, Nissan, Fiat-Chrysler, and Volkswagen.

Ebrard's comments came just a few days after Mexican President Andres Manuel Lopez Obrador said he would not accept the United States proposal for supervisors to oversee the implementation of Mexico's labour reforms under the USMCA.