US will use USMCA to regain influence in Latin America, expert predicts

Economic and political relations have been transformed in the world. The United States is no longer the dominant power on a global level, but it is still the main economy on the planet and in the region. From that position, it has a series of mechanisms, especially through the North American trade agreement, to promote a more decisive position from Mexico regarding the economic advance of China, explained Roberto Zepeda, researcher at the Center for Research on North America (Cisan) of the National Autonomous University of Mexico.

The United States and China have been in an economic conflict for years, which has escalated with Washington imposing tariffs and blockades on companies to prevent Asian dominance in the technology industries. The wall that has been built between Chinese and American trade has made Mexico take on a greater role as a kind of bridge for the eastern country’s exports.

Zepeda stressed that China’s increased economic presence in Mexico acts as an adverse factor for its ability to negotiate with the United States, both in terms of trade and migration, due to the technological trade war between the powers.

In fact, the United States-Mexico-Canada Agreement (T-MEC) contains a clause that prohibits Mexico from signing a free trade agreement with the Asian country, the researcher pointed out.

Mexico has increased imports from China and many of the companies in Mexico export to the United States. The United States does not see this well, because China is using Mexico as a platform to export to that country.Zepeda said.

He added that, due to its sovereignty, Mexico can trade with the economies it chooses, but in the automotive sector, especially some auto parts sectors, as well as in other industries, there could be an impact within the framework of the renegotiation of the T-MEC, if the United States pressures our nation not to export products from Chinese companies or investments.

Zepeda considered that there is a new global order, and evidence of this is the conflicts in Ukraine and the Middle East. However, Washington’s influence has not ceased to be relevant and there is more interventionism to prevent the access or influence of China and other powers in Latin America and Mexico.

The United States is clearly still the country with the most powerful army in the world, the largest economy, but it has lost global leadership; rather, what we see are regional powers, including China and Russia. Thus, the United States, seeing its global power diminished, is trying to regain influence in Mexico and Latin America.he said.