NAFTA demise would not be devastating, Mexico says

NAFTA demise would not be devastating, Mexico says

Nov 17, 2017

MEXICO CITY (Reuters) – Mexico’s economy minister said on Thursday he did not agree with statements made by U.S. Commerce Secretary Wilbur Ross that it would be devastating for Mexico if the United States pulls out of the North American Free Trade Agreement (NAFTA). “No, I don’t think so,” Ildefonso Guajardo said in a television interview when asked if he agreed with Ross. “Without a doubt, Mexico could face a short-term impact because the market is very sensitive to marketing, branding … Our ability to adjust, and the manner in which we do it, is what will allow us to resist any potential change.” In an interview with The Wall Street Journal CEO Council on Tuesday, Ross said that it “would be devastating to the Mexican economy” if the United States were to pull out of NAFTA. Mexico is preparing a package of macroeconomic measures to help withstand a short-term shock if the United States pulls out of the pact, Foreign Minister Luis Videgaray said earlier in the week. Guajardo said that if NAFTA talks, which are currently in their fifth round in Mexico City, do end up stretching into March, the United States must ask itself if it wants the trade talks to influence Mexico’s July 2018 election. The fifth round of NAFTA talks entered their second day on Thursday, proceeding under the shadow of tough U.S. demands and without the presence of trade ministers who agreed to sit out the discussions. A schedule seen by Reuters showed that negotiators will discuss one of the most contentious issues over the four final days, beginning Saturday. In October, the United States proposed that a revamped NAFTA should set a 50 percent minimum U.S. content requirement for autos, as well as raise regional content to 85 percent from the current 62.5 percent. The four days of talks on rules or origin compare to three in the initial schedule for the previous round in Washington. Mexican Economy Minister Ildefonso Guajardo delivers a speech during the inauguration of the IP Statistics for Decision Makers (IPSDM) Forum in Mexico City, Mexico, November 14, 2017. REUTERS/ Edgard Garrido Labor, and cross-border trade in services (CBTS) will both be discussed...

Trilateral Statement on the 5th Round of NAFTA Negotiations in Mexico City

Trilateral Statement on the 5th Round of NAFTA Negotiations in Mexico City

Nov 15, 2017

Mexico City, Mexico – NAFTA Chief Negotiators confirmed today that although the 5th Round of NAFTA negotiations will formally begin on November 17th, some negotiating groups will begin meeting on November 15th. Nearly 30 negotiating groups will be meeting during the 5th Round, which will conclude on November 21st. The three NAFTA Ministers agreed at the end of Round 4 to allow more space between rounds, in order to provide negotiators with enough time to analyze the proposals that all three countries have tabled so far and to conduct internal consultations. In addition, NAFTA ministers met separately at the Asia Pacific Economic Cooperation (APEC) Leaders Meetings in Da Nang, Vietnam, and instructed NAFTA Chief Negotiators to focus on advancing discussions on tabled proposals as much as possible. Given the substantive discussions held between Ministers at APEC, Ministers agreed not to attend the 5th Round so negotiators can continue to make important progress on key chapters advanced in Round 4. Chief Negotiators from Mexico, United States and Canada will be in constant communication with their respective Ministers and will report on the progress reached in this round.       Oficina de Prensa Embajada de los Estados...

Inflation in Mexicali decreases in the month of October

Inflation in Mexicali decreases in the month of October

Nov 10, 2017

Inflation in Mexicali decreased slightly during the month of October, registering 7.31% in its annualized level, while last September the indicator was placed in 8.10%, according to data from the National Institute of Geography and Informatics (Inegi). However, when comparing the monthly inflation of 2017 against that of 2016, it is observed that it continues at a high level, since it was 2.79% in the same period last year . The main products or services that drove the prices upwards are: LP domestic gas, gasoline, automobiles, snack bars, inns, tortillerías and taquerias, chicken, bottled soft drinks and beef. At the national level, the indicator was 6.37%; greater than 3% in October 2016. Tijuana In Tijuana, inflation was 7.42%, higher than the 3.8% of last year; with respect to last September, the registry does not notice a change since it remained at 7.49%....

Mexico’s economy shrinks on NAFTA concerns

Mexico’s economy shrinks on NAFTA concerns

Nov 2, 2017

Mexico announced Tuesday October 31, that its economy shrank 0.2 percent in the third quarter compared with the previous period amid uncertainty related to renegotiations of the North American Free Trade Agreement and local slowdowns caused by natural disasters. Alfredo Coutino, Latin America director at Moody’s Analytics, said the contraction came after Mexico posted GDP gains of 0.7 percent and 0.6 percent in the first two quarters and confirms an expected deceleration in the second half of 2017. “Investment decisions were affected by uncertainty over the possibility that NAFTA negotiations would break off,” Coutino wrote in a report. He added that monetary tightening and high inflation “restrained consumption,” while “activity was partially interrupted in cities affected by the two earthquakes in September and the hurricanes that struck the southern part of the country.” The government’s National Institute of Statistics and Geography (INEGI) reported the contraction and said that GDP for the third quarter was 1.7 percent higher than in the same period last year. Coutino forecast that Mexico’s economy will grow about 1 percent in the fourth quarter and hit about 1.8 percent on the year, down from 2017 and short of target. With information from Associated Press Author Associated Press The Associated Press is an independent, non-for-profit news cooperative headquartered in New York City. Our teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. We provide content and services to help engage audiences...

Mayor of Mexicali worried about cuts to the federal budget

The draft federal budget for 2018 contemplates a cut of 22 billion pesos, this situation is worrisome for Mayor Gustavo Sánchez because Municipal Governments are usually the most affected by the federal budget cuts. Sánchez stressed that two of the items that should not be affected by the reduction in the budget, as both are priority for the municipality, are security and infrastructure. “We are very worried about the national budget cut of 22 billion pesos, we are concerned because as you know, the municipal governments are the last link in the federal money chain , we hope this cut does not affect us particularly in the areas of ​​security and infrastructure, ” said Mayor Gustavo Sánchez. In 2017, the Federal Government cut the public safety resource that was destined for Mexicali by 32%. For this reason, the Mayor explained, his administration continues to work together with the legislators of Baja California so that these items are not affected by the cut. These are the issues that we have been insisting constantly with representatives and senators of Baja California, that they have to fight as much as possible for those resources not to be reduced, let’s not forget that this year, 32% was cut from the federal budget in the area of security for Mexicali “, the mayor concluded. Source: 22 Ayuntamiento de...

Mexicali Mayor Gustavo Sanchez attended Chamber of Commerce money laundering workshop opening

Mexicali Mayor Gustavo Sanchez attended Chamber of Commerce money laundering workshop opening

Oct 4, 2017

“Now more than ever, all Mexicali residents must be certain that the investments which arrive to the city derive from a legit source, and we must assure that they are established according to the Law”, said Mexicali Mayor Gustavo Sanchez during the opening ceremony of the First National Congress of Prevention of Money Laundering and Terrorism Financial Support which is organized by the Chamber of Commerce (CANACO) of Mexicali. Mr. Sanchez said that the participation of border cities such as Laredo, Tijuana and Mexicali, is fundamental, since in these sort of events, there is a lot of new information about new origin rules, money destination and the detection of specific risks within the financial activities. These works will allow the analysis of reality, as Mexico border ports live it and the prevention measures that must be taken, so money laundering won’t impact the border line cities and to prevent any affectation to development in order to avoid organized crime embedding in those cities’ financial system. The event takes place at CANACO Mexicali, with financial system professionals participation as well as people interested in prevention of the so called money laundering and terrorism financing, which includes workshops to train financial development experts in prevention of delinquent phenomena that may impact the country and an exercise in detecting specific risks within several financial activities, professional jobs and vulnerable sectors. In the opening act there were several attendants, among them were: Margarita Flores de Sánchez, President of DIF Mexicali, Ricardo Navarro Benítez President of CONCANACO (National Confederation of Chambers of Commerce) Francisco Verduzco Ortiz, from the Economic Development Secretary of Baja California; Vianey Bañuelos Núñez, President of the Money Exchange Centers and Juan Ramón López Naranjo, President of CANACO...