Factbox-Autos, energy and migration on U.S., Canada, Mexico joint agenda -Breaking
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© Reuters. FILE PHOTO – Flags from the United States, Canada, and Mexico are pictured next to one another in Detroit, Michigan on August 29, 2018. REUTERS/Rebecca Cook/File PhotoWASHINGTON (Reuters] – The U.S. President Joe Biden meets his Mexican counterpart Andres Manual Lopez Obrador and the Canadian Prime Minister Justin Trudeau in Washington to discuss the first summit in five years between these leaders.
The topics likely to be prominent are economic cooperation, climate change and immigration. Here are some issues which could influence the content of negotiations.
AUTOS
These three countries want to make use of the United States Mexico-Canada Agreement (USMCA), a new trade arrangement to strengthen supply chains. However, that push was hampered months ago by disputes within the auto industry.
Canada and Mexico claim that the Biden administration is trying skew electric vehicle (EV) markets with tax credits. Both countries are also in conflict with Washington regarding the interpretation of the regional content rules applicable to the auto industry.
Mexico’s Economy Minister said that U.S. Protectionism threatened to worsen its migration issues.
Top business representatives from all three countries made a joint statement Wednesday to note that Canada and Mexico were concerned by the U.S. interpretations of auto content rules.
ENERGY
Mexico is trying to make it easier for private investors to invest in its electricity market, which has already alarmed both American and Canadian officials.
Lopez Obrador was contacted by the U.S. government in order to solve those issues. A statement from business lobbyists stated that Mexico’s attempt to cut off competition in the energy industry had made the U.S. and Canadian private sector “very worried”.
Trudeau, in addition to EV tax credits is likely to raise money with Biden Enbridge Inc.’s Line 5 Pipeline. This pipeline was threatened by environmental concerns from the U.S. State of Michigan.
IMMIGRATION
Biden must curb an increase in illegal crossings of the U.S. south border. Lopez Obrador, a Lopez Obrador spokesman for Washington has called on Washington to reduce the flow by investing in Central America as well as Mexico’s less-developed southern regions.
Washington has been unable to fund alternative mass migration funding because of allegations of corruption and authoritarianism from Central American governments that are sending many migrants north.
Migration’s dangerous trek during the COVID-19 epidemic has prompted warnings and calls for tighter borders.
Officials say the surge in migration is good for organized crime. However, security cooperation continues to recover from last year’s anger in Mexico caused by U.S. authorities arresting a former Mexican defense Minister.
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