US invites Mexico to join its mega-plan on microprocessors

The United States on Monday invited Mexico to join its grand project of 50 billion dollars to support the production of microprocessors in North America against Asia.

On a whirlwind visit to Mexico City, Secretary of State Antony Blinken urged the Mexican government to take advantage of the Chips and Science Act. This law recently signed by President Joe Biden provides for large investments to compete with Asia in terms of microprocessors. American diplomacy has actively taken up this issue with its partners.

Blinken said the goal was to develop a much more resilient supply chain in the face of dominance by Asian countries.

Essential parts of the semiconductor production chain are already well established in Mexico , he said citing the name of the Intel company.

The United States on Monday invited Mexico to join its grand project of 50 billion dollars to support the production of microprocessors in North America against Asia.

Blinken said the goal was to develop a much more resilient supply chain in the face of dominance by Asian countries.

Essential parts of the semiconductor production chain are already well established in Mexico , he said citing the name of the Intel company.

Mexico takes the United States at its word , Mexican Foreign Minister Marcelo Ebrard told a joint conference. This means more jobs for Mexico , he hoped after a high-level economic dialogue meeting between the two countries.

Lack of details

No concrete details were given on possible US investments in Mexico in the microprocessor sector.

The proposal was made to Mexican President Andres Manuel Lopez Obrador.

It allows the two countries to overcome their dispute over the energy reform launched by Mexico.

In July, the United States, joined by Canada, denounced this reform within the framework of the free trade agreement between the three countries.

Washington believes that President Lopez Obrador's desire to strengthen Mexican public companies threatens foreign investment and renewable energy.

Mr. Blinken recalled that this issue would be settled within the framework of the treaty and its dispute resolution mechanism.

These discussions are part of any business relationship, even between the closest partners , he added.

The issue was only briefly discussed during Mr. Blinken's meeting with the Mexican president, assured Minister Ebrard.

$725 billion in trade in 2021

Arriving at midday in Mexico City, Joe Biden's emissary spoke of the shared threat of the production and trafficking of fentanyl , a synthetic drug that is wreaking havoc in the United States, in his separate meetings with MM. Lopez Obrador and Ebrard.

Mr. Blinken and the Mexican President also spoke about safe, orderly migration with a human face , and their joint efforts to tackle the climate crisis and renewable energy .

Mr. Blinken also spoke about regional efforts to support Haitians and the cooperation of Mexico and the United States to make the United Nations more effective , according to the State Department.

Mexico is the United States' second largest trading partner with some $725 billion in trade in 2021, according to official figures.

Mr Lopez Obrador met Mr Biden in August in Washington after he snubbed the Summit of the Americas in Los Angeles in June on the grounds that Cuba, Venezuela and Nicaragua had not been invited. The two countries will celebrate the bicentenary of their bilateral relations at the end of the year.

MEXICO CITY (AP) — A high-level United States delegation on Monday invited Mexico to participate in a push to shift semiconductor production from Asia to North America and expand production of electric vehicles.

Mexico Foreign Affairs Secretary Marcelo Ebrard said U.S. Secretary of State Antony Blinken spoke to President Andrés Manuel López Obrador about recently passed legislation that would provide $28 billion in incentives for semiconductor production, $10 billion for new manufacturing of chips and $11 billion for research and development.

López Obrador, for his part, explained his plan to make the northern border state of Sonora a leader in lithium, electric vehicle and solar energy production, Ebrard said. Lithium is a key component of batteries for electric vehicles. The president said last month he had already discussed the idea with U.S. President Joe Biden.

The U.S. delegation was in Mexico for a new round of High Level Economic Dialogue. The U.S. side was represented by Blinken, Commerce Secretary Gina Raimondo, Deputy U.S. Trade Representative Jayme White, and Juan González, the National Security Council’s senior director for the Western Hemisphere.

The dialogue, which was launched by then-Vice President Joe Biden in 2013, resumed last year in Washington after stopping during the Trump administration.

The global shortage of semiconductors has slashed into production of autos, household appliances and other goods, fueling high inflation. Biden appeared at the future site of a massive Intel plant in Ohio on Friday.

Last month, López Obrador said the government had created the state-run lithium company that would be in charge of the exploration and extraction of the mineral. Mexico nationalized lithium production in May.

Asked about ongoing trade disputes between the U.S. and Mexico in the energy sector, Ebrard said there was a separate process for resolving those disagreements and that it was not an agenda item for these meetings.

Ahead of the talks, Assistant Secretary for Western Hemisphere Affairs Brian Nichols, who is also attending, said one of the priorities for the talks was promoting development in southern Mexico and Central America.

U.S. border agents’ encounters with migrants from the Northern Triangle countries -- El Salvador, Honduras and Guatemala -- have been running lower this year than last, despite overall encounters at the border being up this year, according to U.S. Customs and Border Protection data. Encounters with Mexican migrants have also been higher for most of the past year.

Mexico has more recently avoided direct clashes with migrants moving across its territory, instead regularly offering them temporary documents to relieve pressure at its southern border.

López Obrador has more recently come under fire from some international and domestic organizations for transferring the recently created National Guard to the Defense Ministry. In many ways, the military already ran the force -- and filled its ranks -- but it had been created as a civilian force. López Obrador criticized the U.N. and the Organization of American States Monday for expressing their concern over the move.

Mexico continues to struggle with high rates of violence. On Friday, the United Nations Special Rapporteur on the human rights of internally displaced persons said at the conclusion of a visit to Mexico that the violence related to Mexico’s drug cartels was the main force causing internal displacements. She called on the government to create an official registry of the displaced, but said data collected from non-governmental organizations suggested there are some 400,000.

The talks come just days before Mexico celebrates its independence day, to which López Obrador has invited figures such as the daughter of revolutionary leader Ernesto “Che” Guevara and the father of Wikileaks founder Julian Assange.

At López Obrador’s daily news conference Monday, the president said he planned to submit a proposal to the U.N. aimed at ending Russia’s war in Ukraine. López Obrador, who did not join other countries by imposing economic sanctions on Russia, proposed creating a mediation commission made up by Pope Francis, the U.N. secretary general and India’s prime minister that would open talks between the presidents of Russia and Ukraine.

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