Adrian Smith

09/05/2024 | Press release | Distributed by Public on 09/05/2024 09:47

Smith, Colleagues Send Letter to USTR on Mexico's USMCA Obligations

Washington, D.C. - Yesterday, Congressman Adrian Smith (R-NE) led a bipartisan letter to United States Trade Representative Katherine Tai. The letter expresses concerns regarding proposals related to electricity, mining, genetically modified corn, and regulatory bodies which are set to be considered by the Mexican government and would likely compromise commitments under USMCA.

Read the full letter here.

Signers include: Ron Estes (R-KS), Jim Costa (D-CA), Greg Stanton (D-AZ), Jodey Arrington (R-TX), Beth Van Duyne (R-TX), Mike Carey (R-OH), Michelle Steel (R-CA), Claudia Tenney (R-NY), and David Schweikert (R-AZ).

Full letter text below

Dear Ambassador Tai:

We write to express our concern regarding various constitutional reforms under consideration by Mexico's Congress. We urge you to engage with President López Obrador, President-elect Sheinbaum, and Mexico's incoming Congress to ensure that any enacted reforms will not conflict with obligations under the United States-Mexico-Canada Agreement (USMCA).

We recognize every government's sovereign right to update its constitution and deeply value the strong partnership between the U.S. and Mexico. However, many of the proposed reforms appear likely to compromise access for U.S. investors to a stable, predictable, and unbiased regulatory framework. We are also concerned by any efforts by the Mexican Government to ban or limit certain extraction methods, curtail lithium exploration, restrict electricity operations and permitting, restrict imports of genetically modified corn, or abolish independent regulatory bodies. Such policies would undermine North American competitiveness and create a challenging environment for relevant businesses that seek to operate under USMCA rules in Mexico.

The anticipated timeline for considering these reforms requires USTR to swiftly engage with the Mexican Government to ensure that concerns of U.S. stakeholders are appropriately communicated. Further, as we prepare for the 2026 review of USMCA, it is imperative that each partner country honor the integrity of the agreement. Any action contravening USMCA obligations will create significant doubt regarding the commitment to our shared goals and will inevitably make the review process more difficult.

Given the significant challenges that these reforms pose for U.S. stakeholders, we request a briefing for congressional staff regarding USTR's engagement. Further, we request a written response to the following questions by September 20.

1. What is the Biden-Harris Administration's position on the proposed constitutional reforms related to energy, mining, genetically modified corn, autonomous regulatory agencies, and judicial reform?

2. What is the anticipated impact that these reforms would have on U.S. businesses and investors?

3. How would these reforms align with Mexico's obligations under USMCA?

4. In what ways has USTR been engaging with U.S. stakeholders to advocate for their interests?

5. How has USTR been engaging with the Government of Mexico on these constitutional reforms since the initiatives were first announced?

6. What is USTR's long-term strategy to protect reliable, unbiased regulatory frameworks and market access for U.S. industries, should these reforms be enacted?

We appreciate your prompt attention to this matter and look forward to working together to strengthen the U.S.-Mexico relationship.

###