U.S. Stocks Jump With Peso, Loonie on Trade Pact: Markets Wrap

10/01/2018 – Bloomberg 

bright-business-chart-210607.jpgU.S. stocks rose toward records and the dollar slipped with Treasuries after negotiators agreed to a new version of the Nafta trade pact. The Canadian dollar and Mexican peso gained.

The S&P 500 Index climbed on the first day of the fourth quarter. General Electric Co. surged after replacing its chief executive, while Tesla Inc. ralliedafter Elon Musk settled with regulators. The loonie and peso each jumped 0.7 percent versus the dollar. Oil drifted higher on concern over a slowdown in U.S. drilling. Treasury 10-year yields climbed to 3.08 percent.

A measure of confidence returned to markets after American and Canadian representatives announced a trade deal to be known as the U.S. Mexico Canada Agreement, making modest revisions to the old Nafta framework. Political drama in Washington still swirled around Donald Trump’s Supreme Court nominee, but investors remained focus on a spate of corporate news and economic data due this week.

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Mexico violence hits Canadian silver miner’s operations

05/28/2018 Reuters

canada mexicoPan American Silver Corp (PAAS.TO) became the latest company to curtail operations in Mexico due to rising violence and crime, saying on Monday it has faced security incidents along the roads used to transport personnel and materials to its Dolores mine.

The Vancouver-headquartered company said it will maintain personnel at its open-pit Dolores silver mine in the border state of Chihuahua at levels necessary for site security and reduced operating activities.

“We have been monitoring the situation, and with the recent incidents that have occurred along the access roads, we have determined the prudent course of action is to suspend personnel movements to and from the mine until the roads are safe for our employees,” Michael Steinmann, the mining company’s president and chief executive, said in a statement.

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Nafta Ministers Set to Meet Again Amid Intensified Push for Deal

04/23/2018 Bloomberg

NAFTA_logoSenior trade officials from the U.S., Canada and Mexico will meet again in Washington in an intensified push to reach a Nafta agreement in the next few weeks.

Talks will pick up on Tuesday, after cabinet-level members vowed on Friday to keep up the momentum following consultations with their technical teams over the weekend. Mexican Economy Minister Ildefonso Guajardo said last week that after seven months of discussions, the three sides have entered a concentrated phase where “my negotiating team is practically living in Washington.” Still, major differences remain over key U.S. demands.

Trudeau Sees ‘Significant’ Progress in Nafta Talks

04/05/2018 Bloomberg

nafta_logoCanadian Prime Minister Justin Trudeau said Nafta talks have picked up momentum, the latest signal a framework deal could soon be reached.

“We are in a moment where we are moving forward in a significant way, hopefully there will be some good news coming,” Trudeau said Thursday in Quebec City. “Right now, we are having a very productive moment.”

The Canadian dollar briefly erased losses after Trudeau’s comments. It was down 0.2 percent at C$1.2789 versus its U.S. counterpart at 10:45 a.m. Toronto time.

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Canada reports progress on NAFTA, says ‘we’re not there yet’

04/04/2018 Reuters

Chystia_Freeland_2016.jpgMexico, Canada and the United States have made good progress in their bid to modernize the NAFTA trade pact but still have work to do, Canadian Foreign Minister Chrystia Freeland said on Wednesday.

Freeland also said she would be flying to Washington for a meeting on Thursday with U.S. Trade Representative Robert Lighthizer, who is pushing hard for a quick deal in principle to finish before a July 1 presidential election in Mexico.

The three members of the North American Free Trade Agreement (NAFTA) could announce by mid-April the outlines of a settlement that would likely tackle the key issue of autos content while leaving other contentious chapters to be dealt with later, say sources familiar with the matter.

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Ditching NAFTA Not in America’s Best Interests

10/28/2017 Houston Chronicle

By Earl Anthony Wayne

Texas has the most to lose of any U.S. state if NAFTA talks go wrong. It has a great deal to gain if the talks to modernize NAFTA go well. Now that the negotiations have slowed over controversial U.S. proposals, Texans and their elected federal and state representatives should be making very clear to the Trump administration team overseeing the NAFTA negotiations that they should do no harm to the massive Texas-Mexico trade relationship, and rather focus on creating new opportunities.

The controversial U.S. proposals and hardball tactics, however, could freeze the talks or send them off the tracks. A decision to pull out of NAFTA, as President Trump has threatened, could cost 250,000 to 1.2 million U.S. jobs, according to one 2017 study. A failed NAFTA negotiation would endanger many thousands of Texas jobs, the state’s largest foreign client and cooperation along the border.

Texas trades $178 billion a year with Mexico. That is more than the entire United States trades with any single country in Europe. It translates into over $20 million of trade each hour: Things are bigger in Texas!

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As NAFTA Talks Restart, Canada and Mexico are Unfazed by Trump’s Threats

8/31/2017 Foreign Policy

The second round of talks for renegotiating the North American Free Trade Agreement is set to start Friday in Mexico. Since the conclusion of the first round, U.S. President Donald Trump has repeatedly threatened to withdraw from the trade agreement. How, then, are U.S. neighbors dealing with the impending round two?

Just fine.

For one thing, while public opinion in the United States toward NAFTA is split, Canadians and Mexicans are in general agreement that the deal is good for their countries.

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[VIDEO] Renegotiating NAFTA Round Two

After what has been described as a tough round one in Washington, the process of renegotiating NAFTA is set to move to Mexico for round two. Beyond the negotiating table, President Trump continues to suggest that he may choose to withdraw from the agreement all together. Mexico Institute Director Duncan Wood summarizes the state of the negotiations and provides analysis on what we can expect next. That’s the focus of this edition of Wilson Center NOW.

Guest

Duncan Wood, Director of the Wilson Center’s Mexico Institute, is a “North American citizen,” lecturing and publishing widely in the United States, Mexico and Canada on intracontinental issues and relations, with a primary focus on U.S.-Mexican ties. A widely-quoted authority on energy policy, international banking regulation and corruption, he works closely with the World Economic Forum and leverages decades of experience at Mexico’s leading universities and newspapers.

Host
John Milewski is the executive producer and managing editor of Wilson Center NOW and also serves as director of Wilson Center ON DEMAND digital programming. Previously he served as host and producer of Dialogue at the Wilson Center and Close Up on C-SPAN. He also teaches a course on politics and media for Penn State’s Washington Program.

Protecting Mexico’s Energy Reforms

8/14/2017 RealClear World

By Duncan Wood

When President Salinas Gortari signed the North Atlantic Free Trade Agreement for Mexico in 1992, he provided certainty and stability for investors hoping to benefit from Mexico’s emerging manufacturing base. The trade deal locked in the benefits of domestic economic reforms and liberalization introduced in the late 1980s and early 1990s. The steady flow of foreign investment that followed turned Mexico into a manufacturing powerhouse.

When negotiators from Mexico, Canada, and the United States start talks on Wednesday to renegotiate aspects of the 23-year-old agreement, they too hope to lock in recently won gains in Mexico that are of enormous interest to all parties. One priority must be to defend hard-won reforms in Mexico’s energy sector — reforms meant to change a sector that was closed and monopolistic for 75 years. Since U.S. President Donald Trump’s inauguration in January, a broad-based movement has emerged that aims to defend two decades of free trade in the region and to insist on the urgency of “doing no harm” during renegotiation. NAFTA’s defenders have managed to influence a change in language: Where commentators once spoke of renegotiating a pact Trump characterized as the worst trade deal signed by the United States, the negotiations are now widely framed as an opportunity to modernize a venerable trade deal so that it more accurately reflects the needs and priorities of the 21st century economy.

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Canada PM Trudeau eyeing Mexico trip in October amid NAFTA talks

08/15/2017 Reuters

trudeauOTTAWA (Reuters) – Canadian Prime Minister Justin Trudeau is considering a trip to Mexico in October to meet with Mexican President Enrique Pena Nieto, his office said on Tuesday.

The visit would be Trudeau’s first trip to Mexico since taking office in 2015 and come in the midst of trilateral talks to update the North American Free Trade Agreement. Pena Nieto visited Trudeau in Ottawa in June 2016.

Negotiations to modernize NAFTA kick of in Washington on Wednesday. U.S. President Donald Trump has targeted both Mexico and Canada for taking unfair advantages in the trading relationship. Ottawa has suggested it could walk away from talks if the United States pushed to remove a key dispute-settlement mechanism in the trade deal.

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