Mexico’s New US Ambassador Sees USMCA Deal Coming Together This Year

The high-stakes review of North America’s free trade pact should be completed later this year, Mexico’s top diplomat in the US said in an interview with Bloomberg Television.

(Bloomberg) — The high-stakes review of North America’s free trade pact should be completed later this year, Mexico’s top diplomat in the US said in an interview with Bloomberg Television. Roberto Lazzeri, who took over as Mexico’s ambassador to Washington last month, emphasized that the US, Mexico and Canada need to accelerate trade talks to give investors more certainty and preserve the region’s competitive advantages.

“The baseline for us is that we have a 10 year agreement. Yes, this may take some time. We expect that it’s done this year,” Lazzeri said.

The diplomat expressed optimism that both the US and Canada share the timeline, and argued that any delay getting to a mutually agreed deal amounts to an economic hit. “Every moment we are losing, we are losing competitiveness and market share,” he said. The USMCA covers roughly $2 trillion in trade among the three nations.

The US opted against a 16-year renewal earlier this month, favoring instead annual reviews over the next ten years as talks continue. Unless one of the governments formally moves to exit the agreement, it remains in effect until 2036. Lazzeri’s bullish remarks on the possibility of a finalized deal come just days before a third round of bilateral US-Mexico trade talks, set for July 21 in Mexico City.

US Trade Representative Jamieson Greer is scheduled to attend the three-day session. He’s also expected to meet with President Claudia Sheinbaum during the trip. Before he was tapped to be US ambassador, Lazzeri headed local development banks Bancomext and Nafin, and prior to that he served as chief of staff to a pair of Mexican finance ministers.

He said businesses looking to expand in Mexico need more certainty to commit capital, and that if USMCA negotiations drag on it could discourage investment across highly integrated North American supply chains. Lazzeri’s comments were broadly in line with recent comments from Mexico’s Economy Minister Marcelo Ebrard, the country’s top USMCA negotiator. Mexico’s overall relationship with the US shouldn’t be viewed only through the two neighbors’ trade ties, he added.

He called USMCA “a fine piece of architecture” signed by President Donald Trump during his first term in office. The diplomat stressed that much has changed since the accord took effect six years ago, increasing the need for regional coordination. Asked about the recent deaths of Mexican nationals in the custody of US immigration agents, Lazzeri pointed to daily discussions between authorities from both countries.

He called for protocols and oversight for the enforcement operations playing out across the US, but didn’t go into further detail. “We want to have not one life lost in these operations,” Lazzeri said. —With assistance from Joe Mathieu and Kailey Leinz.

(Updates with quotes from the ambassador, details on trade talks from the sixth paragraph.)