06 02 2017

Mexico Consults On NAFTA Changes

Mexican President Enrique Pena Nieto has announced the beginning, from February 1, of a 90-day consultation process to identify possible improvements to the North American Free Trade Agreement (NAFTA) that Mexico could support.

The consultations will be used to identify an acceptable negotiating position for Mexico in the upcoming talks with the United States and Canada. The Mexican Government expects those talks to commence in May this year.

It is emphasized in the brief consultation document that Mexico intends to negotiate subject to a set of principles and targets. Renegotiation should, for example, "preserve free trade between Canada, the United States, and Mexico. Trade between the three countries should be exempt from any tariff or quota, as has occurred since 2008."

At the same time, the Mexican Government "will seek to strengthen the competitiveness of North America and its regional supply chains, increasing Mexican exports to the United States and Canada, on the basis of healthy competition and the development of higher value-added sectors."