Mexico, U.S. Express Cautious Optimism on NAFTA Deal

Mexico, U.S. Express Cautious Optimism on NAFTA Deal

Feb 17, 2018

By Anthony Esposito and Lesley Wroughton MEXICO CITY/WASHINGTON (Reuters) – Top U.S. and Mexican officials on Thursday expressed cautious optimism that the North American Free Trade Agreement will be renegotiated, speaking ahead of the next round of trade talks later this month. Asked on local television whether it was more likely the $1.2 trillion trilateral trade pact would survive or die, Mexico’s Foreign Minister Luis Videgaray said there was cause for optimism, though Mexico should be prepared for all eventualities. “We should be prepared for a future with or without NAFTA,” he said. In Washington, U.S. Treasury Secretary Steven Mnuchin said it was a priority for the Trump administration to renegotiate NAFTA, declining to speculate on the consequences if the United States withdraws from talks. The seventh round of negotiations in Mexico City will take place Feb. 25 thru March 5, starting and ending a day earlier than initially planned. There is a “window of opportunity” for concluding the talks in March or April, said Moises Kalach, head of the international negotiating arm of Mexico’s CCE business lobby. “That’s the objective,” Kalach told reporters.   Click here for full article on https://money.usnews.com/ Source: https://money.usnews.com  ...

Marijuana legalization could generate the Mexican economy 60 billion USD a year

Marijuana legalization could generate the Mexican economy 60 billion USD a year

Feb 5, 2018

According to Elliot Burman from Mexico News Network, Marijuana legalization could generate the Mexican economy an additional 60 billion USD a year. The deregulation of marijuana could generate an industry of up to $ 60 billion dollars in Mexico, according to estimates by the National Traffic Light Organization. Pot private equity firms and medical marijuana growers, all look at Mexico as a big business opportunity. Daniel Sparks, head of government affairs at BioTrackTHC, which is a US-based provider of marijuana supply-chain software, is of the opinion that just like US, Mexico bootleggers and mafia lords will give up on illicit moonshine once prohibition ends. “The drug gangs will have little interest in legal marijuana if the market appoints reputed tech and pharmaceutical firms”. He added that even if there is opposition from the cartels, medical and recreational marijuana programs are already depleting the drug lords’ profit margins. Recently, Enrique de la Madrid, Secretary of Tourism, said that the sector requires strategies related to increased security, including the legalization of marijuana in the country. “I think Mexico is so big that we should think about differentiated exercises, as they have done in the United States, where although the issue of marijuana consumption and production is still banned at a federal level, it is a fact that in different states, such as in California, it has been legalized for medical and recreational purposes. It is absurd that as a country we do not take that step. Similarly, he pointed out that in view of the difficulties to legalize marijuana throughout the country, it could be done only at specific points such as Baja California Sur and Quintana Roo, two of the most important tourist destinations in Mexico. In June 2017, the Official Gazette of the Federation (DOF) announced the medicinal use of pharmacological derivatives of cannabis sativa, indica and American or marijuana....

Record remittances of $28.7 billion USD in 2017

Record remittances of $28.7 billion USD in 2017

Feb 3, 2018

Fears over United States President Donald Trump’s policies on immigration and other themes drove remittances to an all-time high in 2017. Mexicans working abroad, principally in the United States, sent US $28.771 billion to Mexico, an increase of 6.6% over the 2016 figure of $26.993 billion, according to the Bank of México. In December alone, remittances totaled $2.604 billion, up 11% over December 2016. The majority of the remittances were made via electronic transfer, of which there were 93.42 million, an increase of 2% over the year before. The average remittance amount was $308. Economist Alejandro Cervantes of the financial services company Banorte said several factors influenced the increase in remittances, including Trump’s immigration rhetoric, the peso’s decline in value and high employment in the United States. Cervantes explained that many consider the transfers as a form of savings, and sent more money home fearing deportation. The state of Michoacán led in terms of remittance amounts at $2.915 billion. Jalisco was second with $2.797 billion, followed by Guanajuato with $2.559 billion. Source: El...

Mexican Peso Traders Are Learning to Ignore Trump’s Tweets: Bloomberg

Mexican Peso Traders Are Learning to Ignore Trump’s Tweets: Bloomberg

Jan 18, 2018

According to Bloomberg.com, Mexican peso traders are learning to quickly move on from U.S. President Donald Trump’s threatening tweets about the border wall and NAFTA. Trump blasted out the following message on his preferred social media platform on Thursday morning: “The Wall will be paid for, directly or indirectly, or through longer term reimbursement, by Mexico, which has a ridiculous $71 billion dollar trade surplus with the U.S. The $20 billion dollar Wall is ‘peanuts’ compared to what Mexico makes from the U.S. NAFTA is a bad joke!” The peso selloff was only a blip. It quickly reversed course to reach the highest level in overnight trading. To be sure, most emerging market currencies are gaining against the dollar at this hour, but the peso has been especially sensitive to speculation that the U.S. could pull out of NAFTA. Click here for full article on Bloomberg.com...

Peña Nieto says he is ‘Optimistic’ about NAFTA deal

Peña Nieto says he is ‘Optimistic’ about NAFTA deal

Jan 12, 2018

(Reuters) – Mexican President Enrique Peña Nieto said on Thursday January 11, that he is optimistic that the United States, Mexico and Canada can successfully renegotiate the North American Free Trade Agreement (NAFTA) to the mutual benefit of the three countries. “I have said so before, I am optimistic about the possibility of getting a deal which benefits the three member states,” Pena Nieto said during a speech in Mexico City. The next round of talks on reworking the 24-year-old trade agreement is due to take place in Montreal later this month. Source:...

FORBES: It is time for Mexico to focus on Asia (and think less about the United States)

FORBES: It is time for Mexico to focus on Asia (and think less about the United States)

Jan 12, 2018

According to Forbes.com, the way the United States closes its economy and ceases to guarantee world peace, forces business leaders to turn to a region that has its own charm. 2018 starts under the sign of uncertainty. An uncertainty to which, in truth, we are already getting used to. In less than two years, an impressive number of events have suddenly changed the world order. It is clear that we are going through a period of transition, but where are we heading to? From the current chaos, the world system features two characteristics:   The first is that there is, at the moment, no superpower capable of taking charge of global security. Among the failures of Afghanistan, Iraq and Syria, and the mismanagement of the Korean question, the US fails to maintain its Pax Americana over the world.   The second characteristic is that the countries of the first world are affected by problems that until yesterday defined the developing countries. Between unrestrained populism, religious and ethnic tensions, and the impoverishment of the middle class, it is no longer the second world (the underdeveloped or emerging countries) that has approached the first world, but it is the first world that is approaching the second.   While the first world suffers, the developing countries continue their race towards economic growth (albeit at different speeds). These countries seem to have definitively renounced any ambition for democratic development. Transitions do not march towards democracy and therefore it would be better to define them as “hybrid regimes”, since they stably combine an imperfect democracy with authoritarian profiles. In addition, as it can be observed in China, liberal and democratic rights are not an essential condition for growth. The Chinese economy grows at a very high rate while maintaining an authoritarian political structure. 2018 will be a year of great opportunities, but also of great challenges as growth in Asia shapes unprecedented geopolitical scenarios. Entrepreneurs in Mexico must become aware of the change and look to the Far East. Source:...