Did you hear President Trump's message yesterday about this new commercial tariff policy of the United States toward the rest of the world? In Mexico's case, there are no additional tariffs, nor for Canada, although in Canada's case they make some specifications, and that is good for the country.
Even though some may not want to recognize it, it has to do with the good relationship we have built between the government of Mexico and the government of the United States, which is based on respect, respect for our sovereignty, collaboration, and coordination.
But with respect for Mexico, for Asia, for Mexicans, and for national sovereignty. And that has allowed Mexico not to have additional tariffs, and it also has to do with the strength of our government, and as I always say, there are many people in Mexico. That is the strength of our country. It lies in the fact that there is no division between the people and the government.
We still have two decrees issued by President Trump related to the automotive industry and to steel and aluminum, which also apply to the whole world, not only to Mexico and Canada. In fact, in the automotive case, it has its own characteristics for Mexico and Canada, particularly for Mexico. Remember that our automotive industry is very integrated, and we are still in dialogue, in talks with the United States government.
The Secretary of the Economy, Marcelo Ebrard, has built a very good relationship with the Secretary of Commerce, which stems from the calls we have had with President Trump. And work and dialogue continue. In fact, very probably the Secretary of the Economy, Marcelo Ebrard, will be in Washington next week.
So we continue working on those two issues: the automotive industry, steel, and aluminum. Now, it is very important that everyone knows which sectors do not have tariffs, because there are very many.
I mean, I don't know if you remember that in the last call with President Trump, I commented that in the case of reciprocal tariffs, in my understanding, there would not be tariffs, because since Mexico does not impose tariffs on the United States, the United States does not impose tariffs on Mexico. I said that in the last call we had with President Trump. I said it in the Zócalo of Mexico City, and obviously also with the characteristics it has to do, I repeat, with what has been proposed for the automotive industry, steel, and aluminum.
But it is very important that everything that maintains zero tariffs within the trade agreement with the United States, the Mexico-United States-Canada agreement, be known.
So that is why we invited the Secretary of the Economy, Marcelo Ebrard, so that he can tell us about all of this and also about the talks, the negotiations, the dialogue that exists with the United States government, particularly in commercial matters.
On the other hand, it is important that you know that today at noon we convened a broad meeting where governors, legislators, businesspeople, and representatives of workers, of unions, and representatives of indigenous peoples will be present—a broad, representative meeting.
The objective of this meeting, obviously, if there was anything more for Mexico, we also had some other proposals, but I have been saying that we have a plan. So the plan for strengthening the national economy and the well-being of the people of Mexico is a plan we have been developing, and it has to do with the Mexico Plan. In any case, we are going to accelerate many of the actions of the Mexico Plan, and that is what we will present today at noon at the Museum of Anthropology.
In the meantime, I ask the Secretary of the Economy, Marcelo, to explain to us the scope of what was presented yesterday and also the issues of the automotive industry and steel. Go ahead here. Go ahead.
Thank you very much. Well, good morning. With your permission, Madam President. If we could put up the next slide, please. This map is to make it easier to have a picture of what happened yesterday, and then I will explain how it adds to what had previously been announced. That is, we are entering a new commercial system in the world. It is no longer the same Most Favored Nation tariff for everyone, the principle of the WTO.
The United States has 14 free trade agreements, but the only case in which tariffs were not applied is in what has to do with the Mexico-United States-Canada agreement. In all the others they were applied. So it is already another commercial system.
The challenge the President raised is that in this new commercial system, the strategy defined by President Sheinbaum was that Mexico must achieve a preferential treatment, meaning that it must have better conditions to compete. Everything has to be thought of in relation to the others. Who can have a lower tariff, or which product can be cheaper, in addition to the logistical advantage that proximity gives us? How can we make what Mexico exports more competitive than that of any other country? That is the route that the President has been building.
So I would say, first of all, that the President's strategy worked, it is working, because today we do have a preferential treatment, and there it is in what are reciprocal tariffs. It is the map of the world. I put here some countries like Russia that have commercial sanctions because someone said whether they were exempt, right? Because they have another situation derived from the war with Ukraine.
So in this red color are all the different tariffs that were announced yesterday. Well, in Mexico's case, obviously the United States, which is the one that imposed the tariffs, and Canada, that is, our agreement, we have 0%. It is the only case. That is how this treatment is translated, which has been achieved thanks to the strategy the President has followed. It is a great achievement, I would say from the point of view that when this began not long ago there was going to be no exception at all. Next slide, please.
This is just from the first charts that began to be published, because there will be a lot of information today, tomorrow, and in the following days, about who has a free trade agreement with the United States and what reciprocal tariff was imposed on them yesterday. All these countries have a Free Trade Agreement, as you can see there is Singapore, Morocco, Jordan, Israel, Nicaragua, Chile, South Korea, Colombia, Peru, and so on up to Australia. So all the cases have a reciprocal tariff. In Mexico's and Canada's case, it is zero.
Now, this means the following. What am I going to try to summarize? Well, first, the President's strategy works. There is the translation. We got the 0% I already mentioned. The agreement is maintained. That is a major achievement, let's not take it for granted, because in a new commercial order founded on tariffs it is very difficult for a free trade agreement to survive.
If we had not achieved this, your question would be, well, then what happened with the agreement? Right? Because the agreement establishes conditions of free trade with a zero tariff. Second, millions of jobs are protected, more than 10 million jobs directly related. Now I am going to talk about what kind of sectors they are. And as the President already mentioned, we have a permanent dialogue with the United States because this is not over yet. This is a chapter, but it has not ended. Now I will explain why. Well, next slide, please.
Just one example that is important to keep in mind. You will say, "Well, but there are products, as the President already mentioned, which I will now explain, the automotive industry, where we are still in a negotiation, what has to do with auto parts, which is within a month, that is not yet concluded, where tariffs of 25% were imposed in the automotive case, auto parts still do not have tariffs. We will see that in the coming weeks." But the ones that are exempt, the sectors that are already exempt, for example, the agri-food sector, everything that is agri-food.
Here I put the avocado, which is the one we are most familiar with, all the products, electronic, electrical, chemical manufacturing, everything related to the chemical industry, clothing and footwear, which is very important for Mexico, as you know, medical devices and pharmaceuticals, machinery and equipment. Here I put a collage of photos so that we are clear about what we are talking about. There are millions of jobs throughout the country that have a zero rate, that is, they have no rate.
And we think, that is the priority the President has given us, we must protect employment, seek that there is no impact on all those sectors that are throughout the country, the entire Mexican Republic. I repeat, agri-food, electronic, electrical, chemical manufacturing, clothing and footwear, medical devices, pharmaceuticals, and machinery and equipment. Next slide, please. You will say, well, what comes next. So, to recap, the strategy is working, the one the President set out. Yes, we have a preferential treatment. The only agreement that has zero is the Mexico-United States and, therefore, Canada one.
Now, what comes next? To summarize. We will be working so that finished vehicles, which have what is called a global tariff, that was announced before the reciprocal tariffs announced yesterday. A global tariff of 25% was imposed. Our goal in the next 40 days is to achieve the best conditions among all the countries in the world in the automotive industry. The same for steel and aluminum.
Steel and aluminum are a little more than 2% of Mexico's exports. The United States has a superhighway. So we will be working the next 40 days. Remember that we have two parallel chapters of the Free Trade Agreement that deal with the automotive industry, steel, and aluminum, and that is our starting point in the negotiations we are now beginning. I calculate 40 days because that is how it is established. So that is the task we have now, that in finished vehicles, steel, and aluminum, and in what the tariff of those who are not within the rules of origin of the agreement does, we achieve the best possible conditions so that Mexico's competitiveness is very high.
That is what comes next, and we estimate it will be around 40 days of negotiations. For now, if we go back to the map, which is the reality we are in, we are going to consolidate this position. Our President is managing a strategy that has many issues at the same time to achieve these results and maximize Mexico's comparative advantages. This is already a very important advantage today because it makes it better to do things here than in other parts of the world. So, President, this would be the report.
Thank you, Marcelo. Well, let's go with the questions on the topic. On the topic, on the topic. Let's see, here is the microphone, please, on your right side.
Excuse me. Good morning. My name is from a German magazine. Madam President, German companies that have factories in Mexico such as Volkswagen, Mercedes-Benz, BMW, Audi, are the most affected by the tariffs. Does the Mexican government have any plans to mitigate the effects of the tariffs on German companies to prevent German investments in Mexico from decreasing?
Yes, in fact we have been in contact with the general managers, with the CEOs, as they call them, of the three companies: Mercedes-Benz, BMW, and Volkswagen. They were concerned that the tariffs would be added together. What have we achieved so far, which is very important? What we achieved on March 6th, if you remember, was that what is within the USMCA, the Trade Agreement, would not have tariffs. That is maintained, with the exception of what was imposed on the whole world for the automotive industry, steel, and aluminum. What is outside the USMCA does have a tariff, an export tax.
The first thing the German companies would have to do, and they are willing to do it, and the Ministry of the Economy will enter into a dialogue process, is for all of them to export through the USMCA, because they are exporting outside the USMCA. So the first thing is that they have to enter within the USMCA, and they are willing to do it, and that would also mean greater rules of origin, that is, greater production either in Mexico, the United States, or Canada. And they are willing to do that, and we are going to sit down and see how it is oriented. That would be the first thing.
They were concerned that tariffs would be added, one tariff with another tariff with another tariff. In the publication made yesterday, they are not added; it is one that is maintained, which in this case, if you are within the USMCA, would be what was published for the whole world for the automotive industry and auto parts. In the case of the automotive industry, what is published now, while we are still in dialogue, is that the part that would not have a tariff is manufactured in the United States. And for auto parts, for now, none of them have tariffs. And the Secretary of Commerce of the United States will be reviewing case by case. That is how it is published.
So, suppose that in the very worst case a tariff would remain. What competitive advantage does Mexico have? Proximity. Even in the very worst case, we believe we can still achieve better conditions, a preferential condition due to the integration of the automotive companies between Mexico and the United States, whether the original capital of these companies is American, German, Japanese, South Korean, or of some other nationality.
So within this whole scheme, with its difficulties, there is still a preferential situation for Mexico, even as we are in the automotive industry, but we believe we can still have better conditions. So there is dialogue with them, and we are seeking, evidently, not only that all the jobs they have in Mexico and their plants are maintained, but that they increase, and there are possibilities to do so.
In the case of Mexico and Canada, President Trump has linked the issue of tariffs to the fight against drug trafficking, and in Mexico's case, especially to fentanyl. Do you think that with the latest measures of the Mexican government, enough is being done to relieve the pressure of the American government on the Mexican government on this issue?
What was published, and this is important, is that the agreement from the last call your servant had with President Trump on March 6th, if I am not mistaken, is maintained. In what sense? That what is within the agreement has no tariffs for the automotive industry, steel, and aluminum, and that what is outside the agreement has a tariff of 25%. In yesterday's publication it is put the other way around; it is not that it adds more, but it says that if we continue collaborating, working, and there is better coordination to reduce the entry of fentanyl, that 25 is reduced to 12.
So it is even a situation where it is not that we would be punished more, but quite the opposite: if there is still even better collaboration and coordination, always putting sovereignty and respect above everything, the tariffs outside the USMCA would even be lowered. So it was a good agreement so far, and we continue in dialogue.
Do you have another call scheduled with President Trump? For now, no. I hope it happens soon, but I hope we can talk. But for now there is a lot of communication between the Secretary of Commerce and the Secretary of the Economy of Mexico, and that shows that we have dialogue.
Thank you, President. Alejandra Ortega from Noticias del Mundo. Now I would like to ask you about this agreement, what was negotiated or how the negotiation was to get President Trump to respect the Free Trade Agreement with Mexico and Canada, given that he has criticized it many times. If you can comment on what has been public, only what has been public.
We have collaborated, we have coordinated on migration issues under our humanist principles. We have collaborated and coordinated on security. We have a framework agreement that was agreed upon, that was discussed in a meeting that took place in Washington in February between some secretaries of the Mexican government, headed by the Secretary of Foreign Relations, in which the Secretary of the Navy, the Secretary of Security, and the Attorney General of the Republic participated, and on their side coordinated by the Secretary of State, or the Secretary of the Department of State, Marco Rubio.
And there, essentially, we talked about in what areas we can coordinate, how to collaborate within the framework of our sovereignties and the principles we have always set as a substantive basis for the relationship. And I believe we have achieved a relationship of respect. I believe it is very important today to say that Mexico is respected by the United States and by the whole world.
And this relationship of respect that we have managed to build with President Trump, which has to do with a frank dialogue of collaboration, coordination, and respect, has allowed us to have today a preferential condition in relation to other countries. Some say, "Well, Canada has it too." Well, obviously, because we are within the agreement. It is obviously up to us to say what we have done as Mexicans and what I have had to do to achieve this condition.
And also in the sense that it continues, it goes on; it is not that today it ended and we applaud and we do not continue, because there are still very important pending issues, because our responsibility is the economic development of the country with the private sector, the different public institutions, the social sector, that is, social property, private property, the government, and the state in its role. It is up to us to promote the economic development of the country, to maintain a relationship of respect with all the countries of the world. And in this condition, we have achieved this preferential treatment with the United States government. It has been a respectful treatment and one of permanent communication and dialogue. Permanent is what we have always put on the table.
And these conditions, you already mentioned the fight against fentanyl trafficking, the migration measures, do you feel they are conditioned on the negotiation of the agreement, which will be very soon, and that could once again put... Why was yesterday's White House publication not in Spanish?
Let's see. There is an additional document that was published yesterday that has more, let's say, technicalities related to the legal framework of the United States. Let's go down. It says, "Well, there is a part dedicated to Canada and then a part dedicated to Mexico." It says, "With respect to articles from Mexico, I have imposed additional tariffs on certain goods to address a national emergency resulting from the flow of illicit drugs and illegal migration through our southern border, in accordance with the executive order published on February 1st, which, if you remember, was the first time tariffs linked to migration and fentanyl were announced."
After this meeting on the 1st, after this publication, we had a first call with President Trump, if you remember, and there we achieved a one-month postponement, modified by the executive order of February 3rd, 2025, which was the one that gave us one more month. Progress on the situation on our southern border and Executive Order 14,227 of March 2nd, 2025, which also spoke of new tariffs. It says, "As a result of these emergency border tariff measures, all goods from Canada or Mexico under the terms of the general note."
I believe this is the other document, right? Well, all goods from Canada or Mexico under the terms of the general note, including any treatment established in the subchapter, in short, these are all the legal characteristics. In relation to the agreement between the United States of America, the United Mexican States, and Canada, they continue to be eligible to enter the United States market under these preferential terms.
However, all goods from Canada or Mexico that do not qualify as originating under the USMCA are currently subject to additional ad valorem tariffs of 25%. That is, everything within the USMCA has no tariffs; it is a preferential situation. Everything outside the USMCA maintains the 25% tariffs, which was the agreement we reached on March 6th with President Trump. In that call we had, and which we reported here, further down there is a part where it talks about the 12%.
Any ad valorem tariff rate on imported articles. Ah, well, up here they are currently subject to additional ad valorem tariffs of 25%, while energy or energy products and potash imported from Canada that do not qualify as originating under the USMCA are currently subject to a 10% tariff.
Any ad valorem tariff rate on articles imported from Canada or Mexico under the terms of this order will not be applied in addition to the tariff rate. Well, this says that tariffs are not added. From this section, all articles that qualify as originating under the USMCA are terminated or suspended. Here it is. They will not be subject to an additional ad valorem tariff rate, while articles that do not qualify as originating under the USMCA will be subject to an ad valorem tariff rate of 12%.
However, these tariff rates on articles imported from Canada and Mexico will not apply to energy, energy resources, which is what is repeated. Well, let's see if we can find the other publication, which is simpler and does not have so many technicalities. The other one, the first one here in the publication, in the other one, because this is the more technical one, what it says is that if there are more advances in the reduction of fentanyl trafficking, then even that 25% rate will be reduced.
So that is, let's say, the preferential situation that Mexico has. What are we missing? Well, we need to improve conditions for the automotive industry and improve conditions for the steel and aluminum industry.
Okay. President, you said here that the greatest impact these tariff measures will have will be on consumers in the United States. But in that country there are 39 million Mexican migrants who will also be affected. 39 million Mexican migrants living there who are affected.
Let's see, it is important, it is 39 million of diverse generations. Among those 39 million are counted second and third generations who are already American and who have Mexican nationality, that is, who have dual nationality. The first generation, I believe, is 6 million. Well, these Mexican migrants live there, consume there, and will be impacted by these tariffs. Their economy has also been impacted by some other measures the President has issued in that country, such as the raids, such as these threats of deportations that have prevented many who work in the informal sector from going out to work in the same way.
What message do you give to these migrants? We will always protect them, help them, embrace them, provide them with legal advice. If any of them want to return here, we receive them with open arms. We continue with the Mexico Te Abraza program, but they will always be protected and cared for by the government of Mexico, and we will always seek the best conditions for Mexicans in the United States who, for some reason, do not have documents.
And finally, I would like to know what percentage of the goods not included in the USMCA will receive a tariff, and how it will affect, how big the damage is from those percentages. The automotive industry represents about 30% of our exports to the United States. What do you say about the automotive industry?
Well, what they published about a week ago, let's see if you have it. Ah, well, let's go with this one first and then we'll go with the other. This is, let's say, a summary of the other document that is simpler because it does not have as many technicalities in its wording, but it says the same thing. For Canada and Mexico, the existing fentanyl or migration orders remain in force and were not affected by this order.
This means that goods that comply with the USMCA, in English it is USMCA, in Spanish it is TEMEC, for Mexico it is TEMEC, will continue to have a 0% tariff. Everything within the USMCA, 0%. Goods not compliant with the USMCA will have a 25% tariff.
That is, as Marcelo explained well, Mexico's and other countries' exports to the United States, particularly Mexico's, had two ways to avoid tariffs, that is, to avoid taxes from the United States on what they import, that is, Mexico's exports. What are those two ways? One way is the trade agreement, the USMCA. The other way is a clause of the World Trade Organization called Most Favored Nation, which was valid until yesterday, when President Trump decided to have a different tariff scheme for the whole world.
So in our case in Mexico, a very important part is exported through the USMCA and the other through the Most Favored Nation clause. If you are under Most Favored Nation, you will have a 25% tariff. What can you do to avoid it? Enter the USMCA. Many, many companies have approached the Ministry of the Economy, many that were exporting through Most Favored Nation, to enter the USMCA. Is it feasible? Is it viable? Is it good for Mexico? Yes, because there a rules-of-origin clause is established, which means that more products or more content must be produced in Mexico.
The Most Favored Nation clause, beyond the legal issue of the World Trade Organization, well, at this moment for the United States it is no longer valid because it has imposed tariffs on the whole world. What this means is that most companies, we will seek and we will provide the facilities for them to enter their exports through the USMCA.
Now, what else does it say? The 10%. In case the existing fentanyl or immigration orders are rescinded, goods compliant with the USMCA will continue to receive preferential treatment, while goods not compliant with the USMCA would be subject to a reciprocal tariff of 12%. That is, if it is USMCA it is 0%. If it is not USMCA and the conditions regarding fentanyl improve, in the Most Favored Nation case it would be reduced from 25 to 12. Yes, did you understand this part? So, let's see if the automotive part is here.
Let's go further down. No, that's not it. I believe this is also a part that is more or less... Let's see, further down. Here it is. To all automobiles that the United States imports, to all of them from all over the world, it imposes a 25% tariff. To all of them, all of them, all of them. And auto parts and automobiles from all over the world, from Europe, from Asia, from Australia, I don't know if they manufacture automobiles, but well, to all the countries of the world. A week ago the United States imposed a 25% tariff on them.
Now, what was published for Mexico and Canada? In the case of automobiles that qualify for preferential tariff treatment under the USMCA, importers of such automobiles may submit documentation to the Secretary identifying the amount of United States content in each model imported into the United States. That is, what they say is that the part manufactured in the United States will be discounted. Remember that we have said that many vehicle parts go back and forth.
So, according to what they published, and we hope to still achieve a more preferential situation, the United States content in those vehicles will not be charged the 25%. Now, further down for the auto parts. There is another publication that is also simpler.
Well, in the case of vehicles, the first one, in the case of vehicles, so far, I repeat, so far because there is still dialogue, vehicles exported from Mexico to the United States will have 25%, excuse me, from Mexico to the United States will have a 25% tariff, with the exception of the part manufactured in the United States so far.
And in the case of auto parts, there it is, importers of automobiles under the United States-Mexico-Canada agreement will be given the opportunity to certify their United States content, and they will implement systems so that the 25% tariff applies only to the value of their non-United States content. That would mean they would have a tariff on Mexican content, but we believe we can still achieve a better condition regarding this due to the integration we have.
Now, automobile parts that comply with the USMCA will remain tariff-free. This is very important. So far, all auto parts that enter through the USMCA are tariff-free. So far, all auto parts, until the Secretary of Commerce, in consultation with the customs office, establishes a process to apply tariffs to their non-United States content.
That is, in the first case they are imposed and the non-United States part will be discounted. In the second case they are free until it is established what the United States content is. Of course we want a better condition than the one set here, but I was saying, even in this condition, which is difficult for the automotive industry, Mexico has a preferential situation. Of course we want to achieve a better condition than this one.
Now, in the case of steel and aluminum, there is a tariff there, right? For the whole world. If, for example, a country was given a 10% tariff on all products, in the case of steel and aluminum it will be 25%. That is the rule the United States government set.
We, beyond whether we agree with that or not, which is another discussion, what are we seeking? The protection of jobs in Mexico, the development of the country, and a preferential situation that we have achieved so far. We want to continue dialoguing, particularly for the automotive industry, steel, and aluminum. I hope it has its complexity, but so far this is the situation.
In favor of those who had the intention of being able to join the USMCA, or also from other origins. We are also, well, the Secretary of the Economy has also dialogued with all the automakers, and all of them are being sought to be within the USMCA.
Ah, well, that is part of what we are going to present today at noon, because in any case we have the Mexico Plan that we are going to accelerate, because all of this, as the Secretary of the Economy, Marcelo, was saying well, completely changes the international situation.
At this moment we are doing everything, including what we are going to announce, so that Mexico moves forward. So this whole international situation, obviously, may have some impact on Mexico, but so far we have a preferential treatment, and no matter what our adversaries say, who do not want to recognize it, it has to do with the relationship of respect we have built with President Trump, of mutual respect as it should be and as the Constitution establishes.
The exports of vehicles, steel, and aluminum, how much do they represent for Mexico's economy?
About a third, more or less. Yes.
Well, on the topic, on the topic, let's see here who has not asked yet.
Good morning, President. Juan Pablo Guerrero from the Canal del Congreso. I want to ask you, given these criticisms that President Donald Trump issued harshly toward the USMCA, toward the Mexico-United States trade agreement, but he issued them toward the NAFTA. Do you remember that there was a trade agreement of Mexico that was signed in December of '94, not '93? That is, Salinas signed it in '94 and it took effect on January 1st of... no, Salinas signed it, but it took effect under Zedillo on January 1st of '94, excuse me, it had been negotiated previously and took effect. Of course, even the Zapatista uprising was the same day, January 1st, 1994, with Salinas de Gortari. After that agreement concluded, under President Peña a negotiation process began for the new agreement that was closed under President López Obrador. Very important what was done. So Marcelo was there as chancellor, Jesús Seade was there as part of the USMCA negotiation, which is a different agreement, much fairer. The Mexico-United States-Canada agreement is a fairer agreement that has its review next year, in 2026. So when President Trump spoke yesterday, what he criticized was the NAFTA, because remember that it was his turn to sign the USMCA in his first term. So the criticisms were of the first agreement on his part.
I want to ask you about this review scheduled for 2026. Would there be a risk that it could be brought forward, and in this case, how would Mexico defend the persistence of this trade agreement that has been beneficial for the three nations? Well, it is the...
Marcelo, you don't want to comment on what you said about the treaty continuing? That's a big...
Well, I would tell you that what we are seeing is, as I was saying, a new global trade structure. In that new global trade structure, Mexico has the best conditions. Today it is cheaper to produce in Mexico and export to the United States than it was yesterday. Because when you look at it as a whole, 185 countries, among them many that compete with us, now have more difficult conditions. That is where we are headed. In summary, that has to do with jobs, with everything that was asked. Now, another very important thing is that the treaty — the question was, will the treaty survive this new trade order? That was the concern of President Sheinbaum from the beginning. Well, yes, because yesterday's criterion was the treaty: the products that are within the Free Trade Agreement between Mexico, the United States and Canada — with the exception of the explanation the President already gave regarding the automotive sector — are exempt, they have 0%. All the sectors we discussed here — agriculture, machinery, electronics, footwear, clothing — remain at zero. So the treaty survived March, which is a new trade architecture. Well, we already achieved that objective. Now, what comes next? What comes next, as the President rightly points out, is to begin the review planned for the treaty. You tell me, 'Hey, it was brought forward.' Well, yes, it was brought forward a lot because it survived. So now we can talk about reviewing it, because otherwise you would be asking me, 'And now what are you going to do since there is no treaty?' No, the treaty is there, we are going to review it and we will try to achieve the best possible conditions for our country.
What percentage of exports to the United States?
Well, we are going to have a base point when this whole discussion begins: under most-favored-nation treatment it was roughly half, and under the Free Trade Agreement it was half. Today we must be at around 85%, perhaps a little more, but I will be able to confirm that in detail and with precision in a few weeks to give you an exact figure. But that is roughly the proportion we have, both on our side at customs and on the USTR side in the United States.
And the other — in general, the other 20% can enter; they have to make some changes, they even have to produce more in Mexico of certain things, but everything can enter within the USMCA, and that is a great advantage. That would be one of the other economies that could take advantage of the spearhead that is the system in this new global economic system of Mexico. Could other economies in the world take advantage of this with Mexico? Yes, if they have investments in Mexico that fall within the USMCA — for example, a German automaker could take advantage of this condition, because if it exports from Germany or from anywhere else in the world, there would not even be a small discount. Yes, now we still want to improve, because obviously we still want a better condition for the automotive industry and for steel and aluminum. In particular, on steel and aluminum, the U.S. Secretary of Commerce, Lutnick, already knows that we import more from the United States than we export. So it doesn't make much sense to impose tariffs on the steel and aluminum industries. So the dialogue, the talks, continue, hoping to obtain a better condition for these two industries, which are, let's say, the ones that have an exception in what was achieved yesterday. Yes, and that the economy is strong, as we have said, with many indicators. There is an international situation that, evidently, Mexico is not exempt from — this international situation, this new trade order set by the President of the United States. But we are in preferential conditions.
Is there any exclusion for possible Chinese investments in Mexico in automobiles?
So far we have not agreed to any investment from China in Mexico in the automotive sector. First, before thinking further, we have to review the agreement and achieve a better agreement with the United States. But there is a good relationship with the government of China, because that also has to be said.
President, finally, I would like to ask you whether, in this situation with the United States and what it represents to accelerate the Mexico Plan, the federal government is considering presenting more reforms to bolster, for example, the growth targets for the domestic market?
For example, the Procurement Law has already been approved in the Chamber of Deputies; it establishes a percentage of national content that is part of our Mexico Plan, and others that we will announce today at noon. Thank you very much.
Yes, now we give you the floor. Thank you, President. Good morning, Secretary. Good morning, colleagues. I am Marco Antonio Olivera from the digital newspaper Hidalgo News and from the YouTube channel México News. I have three topics, two related to the economy of what we are living through. Well, it seems that this tariff issue has made the right wing nervous, and of course its mouthpieces, who do not recognize the capacity of her leadership to, of course, move the country forward on the tariff issue. In that sense, we have to remind them that this is not the first time the United States has imposed tariffs. In 1790, Alexander Hamilton raised the tariff issue. In 1929, the congressmen who carried the surnames Smoot and Hawley also imposed tariffs during the Great Recession of 1929. In that sense, President, I believe — I am not an economist — but with the tariffs imposed on the rest of the countries at 20, 30, 10%, it is a great opportunity for Mexican entrepreneurs who, for example, in the toy industry, if they are only hit with 2 or 3%, could have the opportunity to export and still compete against the Chinese market that has invaded that product. President, what message do you give to these traitors, because it seems as if they did not live in Mexico when they do business here, when they send their children to school here, and of course they also have great fortunes in this country.
Yesterday — no, I am not going to name names — but there were some who were very angry, extremely angry, because what they want is for Mexico to do badly. In other words, they are betting on the defeat of the Fourth Transformation model. And how do they bet on that? By spreading disinformation. Not only that, wanting Mexico to — they would have wanted Mexico to have more tariffs. Yes, today they were furious, saying, 'Well, why didn't they impose tariffs on Mexico?' Exactly. Because they wanted to show that we do not have the leadership of the country, or that we are doing our job badly. So in that sense, they are not interested in Mexico; they are interested in getting their privileges back, and that is not going to happen — first, it will not happen because the people of Mexico are very conscious. But second, beyond what they say, we are working every day for the good of the people of Mexico, for the well-being of the people of Mexico. And we have said it several times here: economic integration with the United States is very great, because that is how it has been built over at least the last 30 years — at least, because before there was also, although in a different way. So for us, maintaining the treaty was something very important, because it means maintaining employment, the development scheme that has been proposed, very different from that of the previous period, because first, the current treaty is fairer, and second, we are interested in the people of Mexico living better and better. With the first treaty, the only thing Mexico offered the United States was cheap labor, and with that they made the minimum wage not grow. What we say is that Mexican women and men are creative, hardworking; there are natural resources, there is ingenuity, there is everything. So there are not two Mexicos; Mexico is unique. So it is not only because here, unfortunately, wages are lower compared to the United States — because of course we would like, and we are going to make, ever better wages for Mexican workers — but it is a trade relationship in which Canada, the United States and Mexico all come out winning, or the United States and Mexico in the case of our country. So of course we have always proposed maintaining the treaty, and so far, in a situation that did not seem like it would be so, the USMCA is recognized. It is very important, very important. And we continue working on the negotiation for the other sectors.
President, I insist again: yesterday was a great day for Mexico, of course, even though some deny it. In that sense, I do not know if the Secretary is present as well — besides the Free Trade Agreement being maintained, as you have stated on multiple occasions, was there the possibility, or is the door open, for the hiring of personnel who could go to work in the United States, as in previous occasions, since that nation currently lacks labor and, well, there is even a congressman putting children to work because there is no labor. Yesterday President Trump mentioned it in his speech. Of course. He spoke about legal migration, about work permits. And how is your government going to work on this, President? Because that is another topic we also have.
Remember that there are several working tables with the United States government so far: migration, security and trade. So we are working on all three.
