Third Meeting of the USMCA/T-MEC/CUSMA Free Trade Commission

Following the USMCA/T-MEC/CUSMA (Agreement) Free Trade Commission (FTC) Third Session on July 7, 2023, U.S. Trade Representative Katherine Tai, Mexico’s Economy Minister Raquel Buenrostro and Canada’s Minister for International Trade and Export Promotion, Small Business and Economic Development Mary Ng made the following joint statement:

“Today, Mexico, the United States and Canada held the Third Meeting of the T-MEC/USMCA/CUSMA FTC in Cancún, Quintana Roo, Mexico. Three years after the agreement came into force, it continues to strengthen a competitive and dynamic North America.”

The ministers stressed the importance of the agreement as a cornerstone of North American economic relations. Ministers also underlined the importance of using the agreement’s mechanisms to resolve disputes in order to improve security, increase competitiveness and avoid unnecessary disruption to trade.

During the meeting, ministers reviewed progress made over the past year and took note of the outcomes of committees and working groups, including commodity trade, state-owned enterprises and designated monopolies, environment, agricultural biotechnology and labour, among others. Ministers offered guidance for future work, reaffirming that continued commitment is essential for the full implementation of the agreement. Ministers also engaged in broader discussions on North America’s competitiveness, SMEs and inclusive trade and work.

North American Competitiveness

The ministers reaffirmed their common interest in improving regional competitiveness. They held a roundtable discussion with business delegations from all three countries to exchange views on economic integration and the role of the agreement in this process. Ministers discussed important work to comply with the provisions of T-MEC/USMCA/CUSMA FTC Decision No. 5, which became effective in February 2023, including coordinating North American efforts to maintain regional trade flows in emergency situations and developing a common Understanding what constitutes critical infrastructure priorities.

Ministers also paid tribute to the recent trilateral human resources development events held in 2022 and 2023. Mexico hosted a virtual event on certification of human resources development and educational practices. Canada then hosted a hybrid event in Winnipeg, Manitoba that addressed climate commitments and opportunities for women, indigenous peoples, youth and other underrepresented groups. Most recently, the United States hosted an in-person event in Huntsville, Alabama, that included meetings with representatives from regional Historically Black Colleges and Universities (HBCUs), state and local governments, and industry. The ministers instructed their respective teams to continue organizing additional human resource development programs in each country to share best practices and explore regional and national solutions to human resource development challenges.

Based on Canada’s suggestion that the three countries should work together to improve North America’s competitiveness by building on each country’s open and transparent investment environments, ministers encouraged each country to share best practices.

SMEs and inclusive trade

Ministers reaffirmed their determination to promote mechanisms to increase competitiveness and encourage the active participation of SMEs in international trade, particularly for SMEs run by groups that are traditionally under-represented. Ministers paid tribute to the trilateral inclusive trade information-sharing meeting that Canada organized for committee leaders in March. In addition, ministers look forward to the 2nd USMCA SME Dialogue to be hosted by Mexico in September. Ministers expressed interest in the upcoming SME Committee activity, organized in cooperation with indigenous SMEs and organizations, to help facilitate trade by indigenous SMEs in the region. This fall will be hosted by Canada.

Work

Ministers reaffirmed their commitment to upholding the workers’ rights set out in the agreement, including freedom of association and collective bargaining rights. Ministers discussed the steps each country is taking to meet the agreement’s obligation to ban imports of goods manufactured through forced labour. The ministers also held a discussion with Mexican labor advocates to hear from workers firsthand, to have their voices informed on trade policy, and to discuss the opportunities the agreement offers to improve the living standards of North American workers and to put them in the center of commerce.

Next Steps

The T-MEC/USMCA/CUSMA Parties share a unique history and culture that prioritizes innovation, equitable development and mutually beneficial trade to create inclusive economic opportunities to benefit our peoples. The agreement is playing an increasingly important role in strengthening the resilience of our economies. As we continue to implement our agreement, the parties reaffirm that the committees should continue to work with underrepresented communities to ensure that the agreement benefits those left behind by trade in the past. The parties also agreed to hold an MPs meeting before the end of this year to assess progress in the areas highlighted today and identify current opportunities for future engagement.