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LatinNews Daily - 27 March 2018

US and Mexico ink bilateral deals

Development: On 26 March, the governments of Mexico and the US signed three agreements to facilitate customs inspections, enhance border security, and improve safety for agricultural exports.

Significance: The agreements were signed as contentious renegotiations of the North American Free Trade Agreement (Nafta) between the US, Mexico, and Canada have been taking place. US President Donald Trump has threatened to pull out of Nafta if Mexico does not agree to pay for his proposed 'border wall' or if the deal does not benefit US manufacturing. The new agreements show a degree of cooperation and compromise between the two countries that has been rare since President Trump took office in January 2017.

  • The announcement regarding the latest agreements followed a visit by the US Secretary of Homeland Security, Kirstjen Nielsen, to Mexico City where she met with Mexico’s foreign minister, Luis Videgaray Caso, and Interior Minister Alfonso Navarrete. The agreements facilitate collaboration between Mexico’s tax authority (SAT), US Customs and Border Protection (CBP), and Mexico’s agricultural health service (Senasica).
  • The first agreement, between the SAT and CBP, is designed to fight customs and commerce fraud at the border and to stop illicit goods from crossing into either country. The second agreement, also between the SAT and CBP, creates a Coordinated Cargo Inspection Program between border security agencies that will unify customs inspections in one efficient process. The third agreement between CBP and Senasica aims to guarantee safety of agricultural goods through collaboration in inspection and commerce.
  • Nielsen and Navarrete also discussed bilateral issues such as transnational crime between the two countries, including arms and drug trafficking. The US and Mexico stated their commitment to protecting citizens by continuing to develop border security and infrastructure.
  • Videgaray affirmed that “many good things are happening in the working relationship between the US and Mexico” while Nielsen responded that the two countries are neighbours, allies, and friends.

Looking Ahead: Despite political differences between the two administrations, the agreements show that the US and Mexico are willing to work together to solve bilateral issues. The Nafta negotiations will continue for an eighth round in Washington DC in early April. With a general election approaching in Mexico on 1 July and mid-term elections due to take place in the US on 6 November, there is considerable pressure to finalise the Nafta talks as soon as possible.

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