- Title: Mexico may leave NAFTA if renegotiation unfavorable -minister
- Date: 24th January 2017
- Summary: MEXICO CITY, MEXICO (FILE) (REUTERS) ****WARNING CONTAINS FLASH PHOTOGRAPHY*** MEXICAN PRESIDENT, ENRIQUE PENA NIETO, AND THEN U.S. PRESIDENTIAL CANDIDATE, DONALD TRUMP, ENTERING NEWS CONFERENCE PENA NIETO AND TRUMP SHAKING HANDS DURING NEWS CONFERENCE CIUDAD JUAREZ, CHIHUAHUA, MEXICO (FILE) (REUTERS) U.S. FLAG WAVING PEDESTRIAN CROSSING AT BORDER BORDER PATROL VEHICLE PARKING NEAR CROSSING POINT CARS AT BORDER CROSSING POINT FENCE AT BORDER CROSSING CHILD BY BORDER FENCE EARTHMOVER AT BORDER FENCE
- Embargoed: 7th February 2017 22:39
- Keywords: NAFTA trade Mexico President Donald Trump President Enrique Pena Nieto renegotiate Mexican Foreign Minister Luis Videgaray
- Location: MEXICO CITY, CIUDAD JUAREZ, CHIHUAHUA, MEXICO
- City: MEXICO CITY, CIUDAD JUAREZ, CHIHUAHUA, MEXICO
- Country: Mexico
- Topics: Diplomacy/Foreign Policy,Government/Politics
- Reuters ID: LVA00260FZ4G7
- Aspect Ratio: 16:9
- Story Text: On the eve of preliminary talks with the United States, Mexican Foreign Minister Luis Videgaray told media that Latin America's second-largest economy could pull out of the North American Free Trade Agreement if a renegotiation of its terms does not benefit Mexico.
U.S. President Donald Trump has vowed to withdraw from NAFTA, which took effect in 1994, if he cannot renegotiate it to benefit American interests.
Trump formally withdrew the United States from the Trans-Pacific Partnership on Monday (January 23) and said he would renegotiate NAFTA "at the appropriate time."
Videgaray will hold talks with senior Trump advisers this week in Washington over trade, security and immigration. Mexican President Enrique Pena Nieto and Trump will meet at the end of January.
"Only executive representatives from both countries will be participating, it is a first meeting focused fundamentally on the working agenda, what will be the themes and procedures for conversations with the United States," Videgaray said.
Pena Nieto said on Monday he will aim to preserve tariff-free commerce under NAFTA in talks with the new U.S. government, calling for the competitiveness of North America to be strengthened.
Videgaray told media he would reject a NAFTA deal that did not benefit Mexico.
"There needs to be something positive for Mexico. It can't be something that damages the country. Of course we will not accept just any re-negotiation of the free trade agreement, there is always the possibility of abandoning the agreement and resorting to the World Trade Organisation standards for trade between the United States and Mexico. That is not our preference, nor is it our initial proposal. Our proposal is to work towards having a better free trade agreement for Mexico and also for the United States," he added.
Another sticking point between the Mexican and the U.S. governments is a border wall, which President Donald Trump vows to make Mexico pay for.
Videgaray said the U.S. is within its rights to build a border wall but that Mexico should not be slugged with the cost of construction.
"We recognise that the United States has the right to build a wall, even though we don't like it. But it is another thing to try to get a neighbouring country to pay for the construction of a wall. We have said many times that that is unacceptable. It's the clear position of the Mexican government and beyond that, it is the clear position of the Mexican people," he said.
NAFTA and other trade deals became lightning rods for American voter anger in the industrial heartland states that swept Trump to victory in the November 8 election.
According to official figures, Mexico is the United States' third largest goods trading partner with over $530 billion in total two-way goods trade in 2015. - Copyright Holder: FILE REUTERS (CAN SELL)
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