Mexico factory activity rises to 16-month high in September

10/2/2017 Reuters

Activity in Mexico’s manufacturing sector increased in September to a 16-month high on the back of stronger output and new orders, a survey showed on Monday.

The Markit Mexico Manufacturing Purchasing Managers’ Index MXPMIM=ECI rose to 52.8 in September from 52.2 in August, when adjusted for seasonal swings.

A reading above 50 signals expansion in the sector, while a reading below that points to contraction.

“The latest set of PMI data show that economic conditions in Mexico remained on an upward trajectory, with factory output expanding in tandem with strong inflows of new work,” said Pollyanna De Lima, principal economist at IHS Markit and author of the report.

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Total Joins Chevron in Gulf of Mexico Development

9/24/2017 Financial Tribune

French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement with Chevron for the development of seven prospects covering 16 blocks in the deepwater section of the gulf.  The French company said the prospects it will develop are located in the Wilcox play in the central Gulf of Mexico, next to the Anchor discovery, and in the Norphlet area, close to the Appomattox discovery, Oil Price reported.

Total will take stakes of between 25-40% in the prospects, to add to its already existing interests in producing fields in the GOM: a 17-% stake in the Tahiti field, whose operator is again Chevron, and a 33.33% interest in the Chinook field, operated by Brazil’s Petrobras. The French major also holds 40% in the North Platte field, operated by Cobalt Energy.French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement.

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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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NEW SERIES | Charting a New Course: Policy Options for the Next Stage in U.S.-Mexico Relations

The Mexico Institute is pleased to announce the launch of its series, Charting a New Course: Policy Options for the Next Stage in U.S.-Mexico Relations, which reevaluates the U.S.-Mexico relationship and explores how both nations can improve upon the bilateral agenda given changes in the regional and global context. The series includes original content, including reports, videos, and more.

Browse the series

[Video] Charting a New Course Part 1: U.S.-Mexico Economic Interdependence

The Wilson Center’s Mexico Institute has released a series of new essays covering a range of important bilateral issues. We kick off our companion video series, “Charting a New Course,” with a focus on economic interdependence. Mexico Institute Deputy Director, Chris Wilson provides an overview of the scope and depth of U.S.-Mexico economic cooperation and also talks about what can be done to make the alliance stronger. That’s the focus of this edition of Wilson Center NOW.

Watch the video…

EVENT ON MONDAY | The State of Mexico’s Economy

mexican pesosWHEN: Monday, January 9, 1:30-3:00pm

WHERE: 6th Floor Board Room, Wilson Center, Washington, DC

Click to RSVP

The Wilson Center’s Mexico Institute is pleased to invite you to an event with the International Monetary Fund’s Mexico team, who will present the conclusions of the recently-completed 2016 Article IV consultation with Mexico.

Mexico’s economy has been growing at a moderate pace, inflation is low, and the unemployment rate has been declining. Fiscal consolidation has begun and the financial system remains strong and resilient to severe shocks. It would be critical to adhere to the planned fiscal consolidation to put the public debt ratio on a downward path, and take steps to strengthen the commitment framework for fiscal policy. Steadfast implementation of the plan to reform PEMEX and strengthen its financial viability is also important. Future monetary policy decisions should continue to be guided by the objective of keeping inflation expectations anchored, while clear communication by the central bank is critical. The exchange rate should continue to act as the key shock absorber to help the economy adjust to external shocks. Significant progress has been achieved in strengthening financial sector prudential oversight but some gaps remain, especially in the governance framework of CNBV and IPAB. On the structural front, strengthening the rule of law and boosting female labor supply would boost potential output and reduce inequality and poverty. Going forward, Mexico will need to navigate an uncertain and complex external environment, with elevated risks of protectionism and heightened global financial market volatility.

Speakers

Robert Rennhack
Deputy Director, Western Hemisphere Department, IMF

Costas Christou
Advisor, Western Hemisphere Department, IMF

Alex Klemm
Senior Economist, Western Hemisphere Department, IMF

Damien Puy
Economist,Western Hemisphere Department, IMF

Fabian Valencia
Senior Economist, Western Hemisphere Department, IMF

Commentator

Christopher Wilson
Deputy Director, Mexico Institute, Wilson Center

Moderator

Duncan Wood
Director, Mexico Institute, Wilson Center

Click to RSVP

3 ways Trump can slap tariffs on China and Mexico

11/14/16 CNN Money 

pesoPresident-elect Donald Trump has threatened to slap big tariffs on China and Mexico to help bring jobs back to America.

At first glance, it may seem hard to do without backing from Congress. But actually, Trump doesn’t even need Congress to approve it.

True, the Constitution gives Congress the right to impose tariffs on other nations. However, several complicated laws have been passed in the last 100 years that delegate that power from Congress to the president.

Trump has several options — each open to interpretation — but here are three key ways he can go after China and Mexico.

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