On February 23-26 CSG led a bipartisan delegation of Utah and California state legislators to Mexico City to address key binational issues. Headed by Utah Senator Todd Weiler, CSG West chair-elect, and California Assemblymember David Alvarez, chair-designee of the Assembly Select Committee on California – Mexico Bi-National Affairs, the delegation was the first official visits by U.S. elected officials to Mexico since U.S. President Donald Trump took office in January. Participating legislators also included Utah Representative Ken Ivory and California assemblymembers Anamaria Avila Farias, Jose Luis Solache, and Dr. Jasmeet Bains.
The current state of the bilateral relationship, particularly concerns about potential impacts on the economies of both countries if President Trump moves forward with the application of 25% tariffs on imported goods was among the most discussed issue with key officials and representatives of the private sector. This included meetings with Mexico’s Ministry of Foreign Affairs, members of the Senate Norther Border Affairs Committee, the office of Mexican President Claudia Sheinbaum, and key executives of the American Chamber of Commerce in Mexico (AmCham/Mexico), and Mexico’s industrial sector.
Analysis of U.S. – Mexico Trade Relationship
The delegation had a chance to meet with representatives of AmCham / Mexico, which represents over 1,500 U.S. companies doing business in Mexico and promotes trade and investment between both countries. AmCham’s Executive Vice President & Director General, Pedro Casas Alatriste, provided a comprehensive analysis of the trade relationship between Mexico and the U.S. In 2023, Mexico became the top trading of the U.S., capturing a majority of the market by taking advantage of decline in U.S. imports from China.
Mr. Casas Alatriste stated that the U.S. and Mexico are not trading partners; but rather are an integrated co-production system for a wide range of manufactured goods, including automobiles, televisions and a host of other valued added products. As such, he stated that if the U.S. imposes across the board tariffs of 25% it will have cumulative impacts and increase costs to U.S. consumers, as well as potential job losses, given the interdependent nature of manufacturing among both countries.
Another key issue shared by Mr. Casas Alatriste were global trends, particularly how in just over 25 years China has surpassed the U.S. as the world’s largest trading partner. The slide below highlights how China has become the largest trading partner across Europe, Africa, Latin America and the rest of the globe.
After over 40 years of economic integration between the U.S. and Mexico through the North American Free Trade Agreement and subsequent U.S. – Mexico – Canada Free Trade Agreement, the threat of tariffs by the U.S. has caused much consternation and discussions among elected officials, economists and key stakeholders in Mexico of the opportunities and implications of decoupling its economy from the U.S. Such a step would reverse decades of economic integration by the two nations.
An overview of the AmCham presentation can be viewed HERE.
SelectUSA Mexico Conference
The delegation attended the 2nd Annual SelectUSA Mexico Conference, which is a key event for business leaders, investors, and government officials looking to strengthen U.S. – Mexico ties. The conference is part of the U.S. Department of Commerce’s efforts to helps companies navigate the U.S. market by providing key insights, connections to economic development organizations, and guidance on federal programs.
Senator Todd Weiler and Assemblymember David Alvarez participated in the conference’s general session that provided an economic and investment overview. Both policymakers shared insights of their respective states’ efforts and programs aimed at attracting foreign investment.
UFC Performance Institute
The delegation received a tour of the Ultimate Fighting Championship’s (UFC) Performance Institute in Mexico City, which promotes talent throughout Latin America. The 30,000 square foot facility, which is the largest mixed martial arts (MMA) facility of the three UFC performance institutes, delivers world-leading services that provide MMA athletes with talent development, fight preparation, health and well-being, and rehabilitation needs. Click HERE to learn more.
Meeting with Northern Border Affairs Committee, Mexico Senate
The CSG delegates were welcomed by members of the Mexican federal Senate’s Northern Border Affairs Committee, chaired by Senator Juan Carlos Loera de la Rosa. The meeting provided an opportunity for the delegates and members of the committee to discuss a wide range of topics, including trade, immigration, and the role of subnational governments in both countries to advance the broader bilateral relationship notwithstanding what is occurring at the national level.
Ministry of Foreign Affairs
The delegation met with Cristina Planter, General Director of Diplomatic Strategy for North America, along with other key staff of Mexico’s Ministry of Foreign Affairs. Director General Planter shared the ongoing discussions and diplomatic efforts with the government of the U.S. on key issues, including trade, immigration, the asylum process, and Mexico’s efforts to curve the transportation of fentanyl to the U.S., as well as concerns about illegal weapons flowing into Mexico.
Director General Planter also answered questions from the CSG delegates with respect to a wide range of issues, including educational exchanges and labor force concerns for agriculture and other important sectors of the economy.
Ministry of Energy
The CSG delegates were hosted to an insightful conversation at Mexico’ s Ministry of Energy. Dr. Jose Antonio Rojas Nieto, Undersecretary of Electricity, along with other key officials from the Ministry of Energy, provided a comprehensive overview of Mexico’s efforts to transform its energy sector, referred as the second step in the transformation. This includes achieving ambitious clean energy goals, enhancing capacity and generation, and reducing energy exports. The legislative delegates from Utah and California shared their states’ respective experiences in transitioning to renewable energy sources while limiting financial impacts to their communities, as well as attempting to achieve balance between industry and the environmental objectives.
Office of President Dr. Claudia Sheinbaum
Jesus Ramirez Cuevas, Staff Coordinator for the Office of Mexico’s President Dr. Claudia Sheinbaum, hosted the delegation at the National Palace for an open conversation on a variety of issues. Mr. Ramirez Cuevas highlighted President Sheinbaum’s priorities and current bilateral challenges and opportunities. He also underscored the important role that states, the private sector, and non-governmental entities in both countries have to inform their federal officials to advance and promote a strong bilateral relationship, as well as share concerns about actions that may have detrimental impacts.
The delegation’s visit and important meetings with key Mexico government officials and private sector representatives were very informative and well-received. The participating legislators shared their enthusiasm and commitment to maintaining dialogue officials and follow-up with the aim of identifying state-level solutions, including legislation, hearings, and bilateral exchanges.
A special thanks to UFC for their generous financial support of the CSG Mexico delegation. CSG also thanks Tayrin Riojas and Gerardo Cruz of Lazos International and Arturo Carmona of Tzunu Strategies for their insights and support.
