Mexico could pull out of the North American Free Trade Agreement if a renegotiation of its terms does not benefit Latin America’s second largest economy, Economy Minister Ildefonso Guajardo said on Tuesday.
“There could be no other option. Go for something that is less than what we already have? It would not make sense to stay,” Guajardo said when asked on local television if Mexico could pull out of the trade deal with Canada and the United States.
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 and said he would renegotiate NAFTA “at the appropriate time.”