The Biden administration rolled out several new policies to curb illegal migration last week, some of which rely on Mexico’s cooperation.
There are other, equally weighty matters that the leaders are expected to address. Both Canada and the U.S. have raised concerns about Mexican energy policies that they say discriminate against foreign investors in the fossil fuel and renewable energy sectors. The three countries have been discussing a possible negotiated settlement for months without success, raising the possibility that Canada and the United States could soon ask for a dispute settlement panel to hear their complaint.
Both Canada and Mexico have accused the United States of adopting an overly stringent interpretation of the automotive trade rules in the two-year-old USMCA agreement, making it harder for cars produced in the two countries to qualify for U.S. duty-free treatment. The disputes don’t end there. The U.S. remains frustrated over Canadian dairy market access barriers, while Canada complains about duties the United States has imposed on softwood lumber shipments the U.S. says are unfairly priced and subsidized. And U.S. farmer groups and members of Congress also want the Biden administration to begin dispute settlement proceedings against Mexico over a decree López Obrador issued in 2020 that threatens to cut off U.S. corn exports to that country.
The leaders’ interactions will also be closely watched. While Biden and Trudeau are often on the same page, Jacobson said, there’s greater tension hovering over the U.S.-Mexico relationship. And it’s not uncommon for López Obrador to take a rhetorical jab at the U.S. during one of his press conferences.
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