After months of negotiations the United States and Mexico have replaced the previous NAFTA agreement with the United States – Mexico Trade Agreement. Canada was not part of the deal, they maybe added later, or not. The pressure is now on the Canadians.
Reports that the White House at next week’s summit of the Americas in Peru wants to present a preliminary NAFTA agreement saw the CAD and MXN rise against the dollar yesterday on the more conciliatory tone of the US.
Banco de México, Mexico’s central bank left its benchmark borrowing rate unchanged at 7% as expected. The vote was unaminous with impacts from recent earthquakes and the inflation risks subsiding.
The NAFTA renegotiation talks completed their third round today in Ottawa, Canada. No surprise the reporters favorite topic, the US imposing 220% duty on Bombardier planes. Negotiators from Canada, Mexico and the U.S. were all positive and look forward to round 4.