MCALLEN, Texas - The United States Hispanic Chamber of Commerce has quickly formed an alliance to challenge proposed new laws impacting the food and beverage industry in Mexico.
The alliance is called the Binational Business Coalition (BBC). Its membership include :
• Albuquerque Hispano Chamber of Commerce
• Arizona Hispanic Chamber of Commerce
• Borderplex Alliance (El Paso, TX, Cd. Juárez, CH, Las Cruces, NM)
• El Paso Hispanic Chamber of Commerce
• Greater Austin Hispanic Chamber of Commerce
• Los Angeles Latino Chamber of Commerce
• Orange County Hispanic Chamber of Commerce
• Rio Grande Valley Hispanic Chamber of Commerce
• San Antonio Hispanic Chamber of Commerce
• Texas Association of Mexican American Chambers of Commerce (TAMACC)
• Texas Border Coalition
• Tucson Hispanic Chamber of Commerce
• United States Hispanic Chamber of Commerce
• United States-Mexico Border Philanthropy Partnership
• United States Mexico Chamber of Commerce
The BBC says the new laws could negatively affect trade between the U.S. and Mexico, leading to a loss of jobs, and the erosion of investor confidence.
Ultimately, the group says, the spirit of the new United States, Mexico, and Canada Agreement (USMCA) could be dampened.
“The USHCC and our coalition members oppose any law that will harm business members and delay our economic recovery,” said Ramiro A. Cavazos, president and CEO of USHCC.
“As we work together to create jobs and opportunity for the global economy during this COVID-19 pandemic, we must promote policies that provide fluidity, encourage commerce, and allow all industries to take full advantage of trade agreements such as the USMCA. State governors cannot hold thriving business sectors hostage while paralyzing crucial economic stimulus for Mexico’s already impacted business community due to COVID-19. These legislative initiatives will harm our business members and other respective constituents who operate internationally.”
During the month of July, the Mexican states of Tabasco and Oaxaca instituted bans on the purchase of high sugar beverages and certain food items from minors under the age of 18. The Mexican government’s top health officials cited the novel coronavirus (COVID-19) as a primary reason for these actions by state governments to curve obesity among other health risks. Currently, an additional 23 state governments are considering similar legislation to create bans on these industries.
The BBC says the proposed legislative policies affecting the Mexican food and beverage manufacturing industries contemplate three overarching restrictions:
1) To prohibit the sale of high sugar-based products to minors under the age of 18 years in any commercial establishment;
2) To prohibit the sale or supply of these products in schools, which is a measure that is already in place and restricted at the national level since 2013 not by government mandate but rather by industry self-regulation; and
3) These legislative efforts propose a strict ban on the marketing of these products in vending machines in public spaces such as educational institutions, hospitals, malls, and other high-traffic pedestrian localities.
BBC says such policy changes could harm the economic vitality of major international markets. Targeted attacks on one industry will create a slippery slope, the group argues, that could leave the door open to future attacks on other manufacturers and corporations, many of them members of the group.
The group says it wants greater collaboration among Mexican government officials, especially the Ministry of Health (Secretaría de Salud) and the Ministry of the Economy (Secretaría de Economía). The group says it wants to safeguard the free flow of commerce and binational trade created through the recent implementation of the USMCA.
“We encourage policy measures that promote economic stability and facilitate the expansion of foreign direct investment across all industries. We further affirm our support for our food and beverage industry partners in the United States, Mexico, and Latin America, and look forward to the opportunity to participate in future dialogue and identify policy solutions to the challenges facing all countries and economies during this time,” said C. LeRoy Cavazos-Reyna, vice president of government and international affairs at USHCC.
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