IMF Says Mexico Credit Line May Be Cut From Current $74 Billion

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11/20/19 – Bloomberg

By Eric Martin and Patrick Gillespie

The International Monetary Fund’s board plans to vote on Mexico’s request to renew its flexible credit line, possibly for less than the current $74 billion, before it expires next week.

Mexico is interested in reducing the size now that there’s greater certainty around its trade relationship with the U.S., Alejandro Werner, the IMF’s Western Hemisphere director, said in an interview Wednesday at Bloomberg’s headquarters in New York. Werner said he expects the board’s decision before the current agreement expires Nov. 28.

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Parts with passports: how free trade drives GM’s engines

automobile car drive grass
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11/18/19 – Reuters

By Nick Carey

Long before the pistons for General Motors Co V-6 engines reach the U.S. No. 1 automaker’s Romulus, Michigan plant, they are seasoned international travelers.

Powdered aluminum from Tennessee is shipped to Pennsylvania and forged at high temperatures into connecting rods for the pistons, which are then sent to Canada to be shaped and polished. They are then shipped to Mexico for sub-assembly and finally the finished pistons are loaded onto trucks bound for Romulus to become part of a GM V-6 engine.

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Mexico’s auto production and exports drop sharply, battered by Ford

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11/06/19 – Reuters

By Julia Love and Sharay Angulo

Mexico’s auto production and exports fell sharply in October compared with the same month last year as production from U.S. automaker Ford Motor Co ground to a halt, according to data from the national statistics agency INEGI.

Auto production declined 16.35%, while exports dropped 19.52%, the data showed.

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Argentine, Mexican leaders meet on trade and cooperation

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10/04/19 – AP News

By Peter Orsi

Argentine President-elect Alberto Fernández met with his Mexican soon-to-be counterpart Monday seeking to boost bilateral and regional cooperation in his first foreign trip since winning election last month.

Fernández said topics of discussion with Andrés Manuel López Obrador in their private conversations at Mexico’s National Palace included improving what he described as a deteriorated commercial relationship and mutual concerns over political upheaval in countries like Chile and Ecuador. He said they barely touched on the political standoff in Venezuela because both men’s stances are well-known.

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Mexico says timetable slipped slightly for U.S. to ratify trade deal

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10/31/19 – Reuters

By Frank Jack Daniel

The timetable towards ratification of a new North American trade deal has slipped slightly but the pact could still pass the U.S. Congress by year end, a senior Mexican trade official said on Thursday.

Speaking in Washington, Deputy Foreign Minister for North America Jesus Seade said his predicted timeline had “extended a little” for Democrats in the U.S. House of Representatives to agree on what changes they would like to see to the agreement.

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Pelosi: U.S. House close to approving trade deal with Mexico, Canada

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10/31/19 – Reuters

By Patricia Zengerle and Makini Brice, Lisa Lambert

The U.S. House of Representatives is still working toward approving a trade agreement President Donald Trump worked out with Canada and Mexico, Speaker Nancy Pelosi said on Thursday.

The House is on a “path to yes”, Pelosi said about ratifying the agreement, which was signed nearly a year ago, adding that her chamber’s inquiry into whether Trump should be impeached has “nothing to do” with its work on the agreement.

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Mexican government mulls legalization of 18 million “chocolate cars”

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10/23/19 – Freight Waves

By Noi Mahoney

Authorities in Mexico have proposed legislation to legalize around 18 million so-called “carros chocolates,” or chocolate cars – vehicles illegally imported into the country from the United States.

If the proposed legislation passes, it would be a blow to the Mexican automotive industry, which relies heavily on global supply chains from U.S., European and Asian producers to make cars.

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Ethanol trade team from Mexico visits Nebraska to understand US ethanol industry

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10/25/19 – High Plains Journal

Nebraska Corn Board

A delegation of 19 industry leaders from Mexico were in Nebraska recently to gain a better understanding of the U.S. ethanol sector. FroThe delegation toured all facets of Nebraska’s ethanol industry, from cornfield to fuel retailer.

 

On the first day of their trip, the group was provided with an overview of Nebraska’s agricultural and ethanol industries before they traveled to Giltner and visited Hunnicutt Farms. At the farm, the team learned about corn, seed corn, popcorn and soybean production. Through the discussions, the delegation was introduced to cutting-edge technologies in American agriculture and were able to better understand how some farmers utilize irrigation equipment.

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In Mexico, ‘green gold’ brings both riches and violence

Fruit Hass Avocado Harvest Avocados Picked Green
Fruit Hass Avocado Harvest Avocados Picked Green

10/23/19 – AP News

Mark Stevenson

Small-scale avocado growers armed with AR-15 rifles take turns manning a vigilante checkpoint to guard against thieves and drug cartel extortionists in this town Michoacan state, the heartland of world production of the fruit locals call “green gold.”

The region’s avocado boom, fueled by soaring U.S. consumption, has raised parts of western Mexico out of poverty in just 10 years. But the scent of money has drawn gangs and hyper-violent cartels that have hung bodies from bridges and cowed police forces, and the rising violence is threatening the newfound prosperity. A recent U.S. warning that it could withdraw orchard inspectors sent a shiver through the $2.4 billion-a-year export industry.

Mexico peso headed for choppy waters on back of trade uncertainty

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10/24/19 – Reuters

By Abraham Gonzalez

Mexico’s peso is headed for choppy waters in what remains of 2019 as the ongoing U.S.-China trade war and the uncertain fate of the new North American trade deal could cause the currency to fluctuate between 18.80 and 21 per dollar, analysts say.

The peso’s immediate future ultimately depends on whether the world’s two largest economies can resolve their trade dispute and if U.S. lawmakers ratify the new U.S-Mexico-Canada (USMCA) trade agreement before it gets bogged down in the U.S. electoral politics.

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