Chinese investors are likely to keep the USMCA advantages despite the competition between China and the United States: Mexican envoy

Mexico -Mixed envoy said on Thursday that the factories funded by the Chinese in Mexico “are very unlikely” excluding them from the preferential treatment under the United States, Mexico and Cananga Convention (USMCA), although the free trade deal next year.

“There is no indication of the presence of restrictions targeting Chinese companies,” David Trugilo, Deputy Commercial Adviser at the Mexican Embassy in China, told the Post newspaper on the sidelines of the Chinese International Supply Series Exhibition.

The customs duties imposed during the period of US President Donald Trump have prompted many Chinese companies to move, with Mexico becoming Famous destination To invest abroad. USMCA allows imports of the country to enter the tax -exempt market in the American market as long as a specific share of goods is produced in North America.

But with the escalation of trade tensions between the United States and China since Trump returned to his post, questions arose about whether Chinese companies in Mexico will keep these benefits-especially with Washington’s recent tariff on Steel and aluminum Imports have already been considered to undermine the free trade agreement.

Beijing also warned other countries against reaching commercial deals with the United States that come at the expense of China.

However, Trujillo said that the reviews to USMCA will likely focus on tightening the requirements of synthesis rules-which means that companies will need to make more of their products locally to qualify-instead of providing restrictions on specific countries.

“For major industries such as the auto industry, the condition is now 75 percent,” he added. “It may be higher.”

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