Mexico USMCA Developments & COVID-19
On May 5th, 2020, the President of Mexico Andres Manuel Lopez Obrador (AMLO), announced new measures to resume activities on the automobile manufacturing, mining, and construction industries. The Mexican Ministry of Economy, Graciela Márquez Colín, announced on May 13 a new plan to resume activities in three stages. According to the official, the first stage of the plan will begin on May 18 in those municipalities in which they have not registered infection cases. The second stage will begin on May 18 to 31 to prepare workers, companies, and families. In the second stage, Mexico will – (not sure what word you wanted to use) out sectors such as construction, mining and the manufacture of transport equipment which will be considered essential and subject to strict health protocols. The third stage will begin on June 1, and it will have five categories: (1) public health measures, (2) work activities, (3) open and closed public spaces, (4) vulnerable people and (5)educational activities.
Mexico is preparing for the transition at all levels, including the entry into force of the Tratado entre México, Estados Unidos y Canadá (T-MEC) or the United States-Mexico-Canada Agreement (USMCA), which enters into force on July 1.
Meanwhile the U.S. Customs and Border Protection (CBP) announced on May 11 that it has opened the USMCA Center in Washington, D.C., that will serve as a central communication hub for CBP and the private sector, including merchants, brokers, freight forwarders and producers, ensuring a smooth and efficient transition to work in the implantation of the accord. The USMCA Center will be staffed with experts from operational, legal, trade policy and logistics areas, and will have a direct communication channel with Mexico and Canada. The center will cover issues such as regulatory changes, automation changes that will occur within cargo systems, rules-of-origin changes, as well as new labor laws enacted by USMCA.