SAN DIEGO (Border Report) — Leaders of the banking industry in Mexico are pushing for the immediate renegotiation of the US-Mexico-Canada trade agreement, which is not due for revision until 2026.
However, bankers in Mexico say time is of the essence and waiting until next year might be too late to avoid a recession and further loss of investment.
Eduardo Osuna Osuna, vice president and general manager of BBVA Bank, said a new USMCA agreement would do away with current uncertainty generated by the on-again and off-again tariffs implemented by U.S. President Donald Trump.
“This revision needs to be done in the coming months, so our country can grow,” said Osuna Osuna. “Now is the time to promote growth, that in the long run, will benefit our government and our society.”
USMCA went into effect on July 1, 2020. It replaced the North American Free Trade Agreement, or NAFTA. Trump, then-Mexican President Enrique Peña Nieto, and former Canadian Prime Minister Justin Trudeau negotiated it and signed it during the 2018 G20 Summit.
Osuna Osuna spoke with El Sol de Mexico during a banking convention in Mexico City this week.
“Initially we thought the agreement would need simple revisions, but at the juncture we are facing now, I believe we can’t wait until 2026, it’s much better to begin now,” he said. “There won’t be foreign investment or from people here in Mexico, we need clarity and as soon as possible as a way to dissipate uncertainty now gripping most industries.”
The head of BBVA said the Mexican government must also act now to secure the energy sector and infrastructure to move the country forward.
“We can’t depend on winning an economic war on a worldwide level,” Osuna Osuna said. “We need to secure tourism and other sectors like the textile industry, which could benefit from investment, we have to work with all industries looking for financial bottlenecks that need to be resolved.”
He stated banking is a pillar of the economy, but without investment, it’s hard to move forward.
“Our banking system in Mexico is solid, but we need to get rid of these uncertain times to ensure a better future.”
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