Mexico's Trade Pact: A Test of Resilience

Mexico's economy minister, Marcelo Ebrard, is confident that the USMCA trade deal will stay strong, despite Trump's doubts. He said they are in the review phase and must finish by July 1. Ebrard believes they have made good progress on all points. Trump, however, thinks the deal is not beneficial. He said it is irrelevant while visiting a Ford factory. The USMCA replaced NAFTA in 2020 and is crucial for Mexico's economy. The three countries must review it this year to extend it for another 16 years.Many experts think negotiations will go beyond 2026. They believe Trump will avoid extending the deal before the U. S. midterm elections. Trump's threats against Mexican cartels add more uncertainty to the relationship. Alexia Bautista, a former Mexican diplomat, thinks Ebrard is hopeful but the deadline is near. She warns that Trump might mix security issues with trade, making negotiations more political. Pedro Casas, CEO of the American Chamber of Commerce in Mexico, expects tariffs to stay. The U. S. has already imposed high tariffs on Mexican exports, like steel, aluminum, and cars. Casas thinks the deal might be extended, but tariffs will weaken it.