The Day at a Glance | May 18 2021

The Top

*Mexico, the US and Canada address topics including labor rights, investment protection and climate change during the first review of the USMCA.

*Economic Activity Timely Indicator shows a 20.6% annual recovery for the Mexican economy in April.

*The Japanese economy contracted more than expected (-5.1% annualized) in the first quarter of the year, while the country fights a new wave of the virus.

*Employment fell (-) 0.3% in Europe during the 1Q21.

Economic environment

Mexico, the United States and Canada held their first day of meetings to go over the USMCA. According to news reports, the trade partners raised concerns about difference issues such as labor protection, the investment climate and labor rights. In a statement made public by the Office of the US Trade Representative, Americans affirmed that they have asked Mexico to continue to carry out efforts regarding labor protection in addition to calling for an improved policy that would respect private US investment and is consistent with climate change efforts. US Trade Representative Katherine Tai assured a month ago that the United States will use all available tools in the agreement to have Mexico and Canada meet their commitments. Other relevant issues for the Americans include regulation in the agricultural sector, market access for US potato exports and the need for Mexico to resume the authorization of agricultural-biotechnology products. Canada, for its part, raised concerns on the investment climate in the mining and energy sectors in Mexico. The Mexican government also made a statement in which it revealed that the rules of origin for the production of automobiles were discussed – as well as for cross-border access for Mexican trucks, and some disputes regarding the agricultural sector. In six weeks the agreement will have been in effect for a full year and representatives of each country will hold another meeting today before specialized committees get together in the following months.