Following their first joint review meeting last week, the three countries opted for annual evaluations of the treaty under Article 34.7.4.
Mexico, the United States and Canada decided to carry out annual reviews of the T-MEC after the first joint meeting held the previous week. This option is provided for in Article 34.7.4 of the agreement and turns the evaluation process into a permanent one instead of an extraordinary exercise every six years.
Annual meetings of the Free Trade Commission already existed to oversee the treaty. The new aspect is that the mechanism adds a decision-making component on the continuity of the agreement and priorities among the parties.
Advantages noted include the chance to resolve disagreements before they accumulate and greater ability to adapt to rapid economic changes such as those driven by Artificial Intelligence. A political benefit is also mentioned through more technical and gradual dialogue.
Risks highlighted include uncertainty for investors with long-term plans and the possibility that the process could be used as a tool for political pressure by administrations.
