Mexico will not be pressured into NAFTA renegotiation, but will make counter-offer - Reuters
|As reported by Reuters, Mexico is staunchly refusing to cave to US pressure to conclude the stalled-out NAFTA renegotiations, but the country has made a fresh counter-offer to the US following the Trump administration's investigation into whether it can cite national security as a justification for imposing hefty tariffs on automotive imports.
Key quotes
"Differences over how to reconfigure the auto industry have slowed progress on talks to rework the 23-year-old North American Free Trade Agreement that underpins Mexico’s economy, with Mexico showing some flexibility but refusing to completely meet U.S. demands.
One Trump official said the investigation was partly aimed at yielding NAFTA concessions from trade partners Mexico and Canada.
“Mexico is not going to negotiate on the basis of pressure, Mexico is very clear about what works and what doesn’t work for us,” said Pena Nieto’s spokesman, Eduardo Sanchez.
However, Mexico made a new offer on autos “showing some flexibility” on Thursday, following the U.S. announcement of the national security probe into car imports, a person familiar with the talks said. It was not immediately clear if the offer encompassed other areas under negotiation.
The United States wants 40 percent of auto content to come from areas paying at least $16 hour.
Mexico has also proposed that 70 percent of overall content of a vehicle made in North America come from the region, countering a U.S. proposal of 75 percent for high-value parts."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.