Trans Pacific | Mexican negotiator says American interests are superseding Mexico and Canada’s
SAN ANTONIO, Texas — The Trans Pacific Partnership and piecemeal deals with Europe are undermining the North American Free Trade Agreement, says Mexico’s chief negotiator for NAFTA.
Canada and Mexico need to protect their NAFTA interests, Jaime Serra Puche told the Canola Council of Canada’s annual meeting, and all three major North American countries should form a common agreement with the European Union.
“I think that both Mexico and Canada … rushed into this negotiation without thinking about it very thoroughly,” Serra Puche said about the TPP.
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“It turns out that there are many issues in the TPP negotiation that could hurt Mexico and Canada.”
Serra Puche said the United States has more than expanding trade access in mind with the TPP.
“It’s not a trade policy for the Americans. That negotiation is a China issue,” he said. “It’s basically a containment negotiation.”
Serra Puche said the problem for Canada and Mexico is that whatever TPP deal is approved will supersede NAFTA, making North America a less effective trading block.
The U.S. is looking out for its geopolitical concerns, he added, but they aren’t necessarily the same as those for Canada and Mexico, and weakening NAFTA to achieve them isn’t necessarily a good deal for the smaller NAFTA partners.
With European trade, Serra Puche said it would be better for Canada, the U.S. and Mexico to sign one comprehensive NAFTA-European Union agreement rather than the three deals that will probably soon exist. Mexico has had free trade with Europe for years, Canada will likely soon have it and the U.S. will follow. However, the conditions of each deal will be different.
Serra Puche said North America needs to start working toward becoming a customs union similar to the EU. The North American trading bloc has a common set of tariffs for non-NAFTA imports but no “rules of origin” because they have led to trade fights and conflict within the NAFTA zone.
“Why don’t we have a common competition policy for the whole region?” said Serra Puche.
The continent should also start developing a common logistics policy, he said.
