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February 6, 2017
2017-0257

The Mexican government initiates consultation period to receive comments in preparation for renegotiation of NAFTA

President Trump has made quite clear his intention to renegotiate the North American Free Trade Agreement (NAFTA) with Mexico and Canada. To date, no official request from the US government has been made, no timetable established, and no concrete proposal for potential amendments put forward by either the US, Canada or Mexico. The Mexican government, however, has taken a first step in reaching out to the trade community for input on desired changes in anticipation of US action on NAFTA.

On February 1, 2017, the Mexican government stated that it will initiate a 90-day consultation period with the private sector and all interested parties, including Mexican, US or Canadian entities, in order to receive comments in preparation for NAFTA negotiations. The consultation mechanism will remain active once formal negotiations with the US and Canada begin.

The objective of this consultation period is to receive comments from the private sector in order to define the parameters which will guide the Mexican government in NAFTA negotiations. Businesses would be well served by considering the specific types of amendments that may be beneficial, as well as those aspects of NAFTA that the business would find detrimental if changed. For example, businesses may find changes to product-specific rules of origin advantageous or determine that the elimination of NAFTA article 303 restrictions to duty deferral and drawback would be beneficial.

There is no specified format of process for providing input. Details of the proposal can be found on the Mexican federal government's website (last accessed on February 6, 2017).

EY can assist businesses with analysis of the impact of possible amendments to NAFTA, and with the specific potentially beneficial amendments identified, assist with the preparation, submission and follow up of specific recommendations with Mexican governmental officials.

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Contact Information
For additional information concerning this Alert, please contact:
 
EY (United States)
• Armando F. Beteta, Dallas+1 214 969 8596
• Kristine Price, New York+1 214 969 8602
• William Methenitis, Dallas+1 214 969 8585
EY (Mexico)
• Rocío Mejía, Mexico City+52 55 5283 8672
 

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