(Yicai Global) Oct. 15 -- The United States-Mexico-Canada Agreement, a pending free trade deal between those countries, will not impact Mexico's relationship with China or limit trade between the two nations, according to the Latin American country's foreign minister.
Luis Videgaray Caso told China's State Councilor and Foreign Minister Wang Yi in an Oct. 13 phone call that China is a reliable trading partner and Mexico wants to further develop the bilateral ties, China's Ministry of Foreign Affairs said online yesterday.
China and Mexico are strategic partners and always understand, trust and support each other on major issues, Wang said. No multilateral or bilateral free trade agreements will be directed against any third party, limit other parties' legitimate rights and interests or advocate exclusionism, he added, saying both countries are emerging economies and should unite to uphold multilateralism and maintain the free trade regime.
The USMCA caused a stir earlier this month when it was revealed that the terms contained a clause which said any party planning to strike a free trade deal with a non-market economy would need to inform the other parties three months before negotiations begin.
A non-market economy is one that the US Department of Commerce believes does not operate under free market principles, and the clause is widely regarded as a move to make trade with Beijing more troublesome for Mexico and Canada.
China and the US have come to heavy blows over trade and have hit each other with a mountain of tariffs in a bid to come out on top. Washington hit China with the third wave of new tariffs this year on Sept. 24, placing a 10 percent duty on USD200 billion worth of Chinese goods and planning to increase that to 25 percent at the start of next year.
Beijing responded the same day, adding 5 percent or 10 percent rates to USD60 billion worth of American goods. It now has tariffs worth USD110 billion targeting the US exclusively, while American tariffs against China amount to USD250 billion.
Editor: James Boynton