Mexico president says seeks to preserve tariff-free NAFTA trade

Record ID: 165301

  • Title: Mexico president says seeks to preserve tariff-free NAFTA trade
  • Date: 23rd January 2017
  • Summary: MEXICO CITY, MEXICO (FILE) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** GENERAL VIEW OF NEWS CONFERENCE GIVEN BY PENA NIETO AND U.S. PRESIDENT DONALD TRUMP DURING HIS CAMPAIGN PENA AND TRUMP GREET ONE ANOTHER CAMERAMEN AND REPORTERS VARIOUS OF PENA NIETO AND TRUMP AFTER NEWS CONFERENCE CIUDAD JUAREZ, CHIHUAHUA, MEXICO (FILE) (REUTERS) BORDER BETWEEN CIUDAD JUAREZ AND EL PASO, TEXAS PEOPLE CROSSING INTERNATIONAL BRIDGE U.S. FLAG FLAPPING IN WIND MORE OF PEOPLE CROSSING BRIDGE UNITED STATES BORDER PATROL BORDER PATROL VEHICLE GENERAL VIEW OF INTERNATIONAL BRIDGE BORDER FENCE CHILDREN PLAYING BY THE FENCE WORKERS WORKING ON FENCE REINFORCEMENT POLICE VEHICLE AT THE FENCE
  • Embargoed: 6th February 2017 20:24
  • Keywords: Pena Nieto Trump NAFTA trade
  • Location: MEXICO CITY, MEXICO / CIUDAD JUAREZ, CHIHUAHUA, MEXICO
  • City: MEXICO CITY, MEXICO / CIUDAD JUAREZ, CHIHUAHUA, MEXICO
  • Country: Mexico
  • Topics: Government/Politics
  • Reuters ID: LVA00260AZ1HJ
  • Aspect Ratio: 16:9
  • Story Text: Mexico will aim to keep tariff-free commerce with NAFTA partners Canada and the United States in its talks with the new U.S. government, President Enrique Pena Nieto said on Monday (January 23), and will seek bilateral trade deals with other nations.
    In a key foreign policy speech, Pena Nieto underlined the importance of open dialogue and negotiation with new U.S. President Donald Trump's administration.
    "It's clear that the United States has a new vision for its foreign policy. Faced with this reality, Mexico is forced to take actions to defend its national interests. It's clear that we have to start a negotiation. There are some, who by the tone the U.S. election campaigns took, would suggest that Mexico now take an aggressive and confrontational stance and others when seeing the asymmetries between the two countries, foresee submission. None of these positions is the solution, neither one of confrontation nor submission, the solution is dialogue and negotiation," Pena Nieto said.
    Trump wants to renegotiate the North American Free Trade Agreement (NAFTA) between Mexico, the United States and Canada, and would move to withdraw if no "fair deal" is forthcoming, according to the White House website.
    He has also threatened to slap companies that move production to Mexico to export to the United States with a 35 percent tax.
    "We must preserve free trade between Canada, the United States and Mexico. Trade between the three countries must be exempt from any tariff or quota, as has been the case since 2008. We want to strengthen the competitiveness of North America and its regional supply chains by increasing Mexican exports to the United States and Canada on the basis of healthy competition and the development of higher value-added sectors," said Pena Nieto.
    Mexico will also immediately seek bilateral deals with countries that formed part of the Trans-Pacific Partnership (TPP) free trade deal, Pena Nieto said at the event in Mexico City.
    "In particular, given the obvious difficulty of implementing the Trans-Pacific Partnership treaty, TPP, Mexico will immediately initiate talks that will generate new bilateral trade agreements with the countries participating in that treaty," added Pena Nieto.
    Trump formally withdrew the United States from the TPP on Monday.
    This week, senior U.S. and Mexico officials will meet to discuss trade, security and immigration. Pena Nieto and Trump will meet at the end of January.
    Pena Nieto said Mexico believed in bridges, not walls. Mexico has repeatedly said there is no way it will pay for a wall that Trump has pledged to build on the United States' southern border to keep out illegal immigrants.
    "We will work for a border that unites us, not divides us. While Mexico recognises the rights of every nation, of every sovereign nation, to guarantee its security, Mexico does not believe in walls. Our country believes in bridges and road and railway crossings and the use of technology, as the best allies to promote a good neighbourhood," Pena Nieto said.
    The wall has been a bone of contention between Trump and Mexico since the businessman launched his presidential campaign in June 2015, accusing Mexico of sending rapists and drug dealers across the border into the United States.
    "I have said it before and today I'm convinced of it. It's in the interest of the United States for Mexico to do well and likewise, it's in Mexico's interest that things go well for the United States. Mexicans value the relationship we have built during years and we know that if we work together, we can continue advancing in the right direction," added Pena Nieto.
    Mexico's peso was little changed by Pena Nieto's announcements. The currency was gaining ground for the second session in a row after Trump refrained from specifically mentioning Mexico in his inauguration speech last Friday or taking initial actions that would disrupt trade with Mexico.
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