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LatinNews Regional Monitor: Mexico - 11 October 2018

Economic Highlights

New North American trade deal: On 30 September Mexico’s foreign minister, Luis Videgaray Caso, celebrated the announcement by Canada that it had agreed to subscribe to a new trilateral trade agreement with the US and Mexico that will replace the North American Free Trade Agreement (Nafta). The announcement by Canada that it has agreed to subscribe to the new US-Mexico-Canada Agreement (USMCA) is a boon for Mexico and appears to validate its decision to break ranks with Canada to obtain a bilateral deal with the US first and then hope that the US and Canada could sort out their bilateral differences. Videgaray said that Canada’s adhesion to the USMCA is positive for Mexico as it means that there will still be a liberalised North American trade area in which Mexico will have duty free access to its neighbours’ markets. Videgaray also pointed out that the USMCA will serve to continue the regional economic integration process in North America to the benefit of the region’s economy; and added that now that a trilateral agreement has been reached, the Mexican government will send a copy of it to Mexico’s senate for ratification. The new USMCA deal will come into effect once it has been ratified by the respective legislatures of the three countries. But both Mexico and the US have said that they would like ahead of the November midterm elections in the US and the change in government in Mexico on 1 December, so that the process is now affected by these political events.

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