Supply Chain News

Mexico Projecting a More Ambitious NAFTA Schedule than U.S. Suggests

Foreign Relations Minister Luis Videgaray says NAFTA deal could be reached by end of the year, but U.S. Commerce Secretary Wilbur Ross indicated expectation talks would last into 2018.

As reported by Bloomberg, Mexico’s chief diplomat said that the nation hopes formal talks to revise the North American Free Trade Agreement will begin at mid-year and wrap up by December, projecting a more ambitious timetable than the one suggested by Donald Trump’s top commerce official.

Based on conversations with the White House, Mexico is looking to start formal NAFTA talks in late June or early July, spend several months working and complete them toward year end, Foreign Relations Minister Luis Videgaray said in Washington after meetings with Trump advisers Thursday.

On Wednesday, U.S. Commerce Secretary Wilbur Ross said in an interview with Bloomberg TV that the trade talks will probably begin in the latter part of 2017 and that he hopes they won’t last much longer than a year.

If NAFTA talks follow the scenario suggested by Ross, uncertainty over the agreement’s fate will likely hang over the July 2018 presidential election in Mexico, which could fuel economic concern, particularly if it seems the agreement will fall apart.

The ruling party of President Enrique Pena Nieto and Videgaray is likely to face pressure and criticism from populist opposition candidate Andres Manuel Lopez Obrador, who has led potential rivals in early polls. Mexican law prevents Pena Nieto from running for re-election.

Mexico Foreign Relations Minister, Luis Videgaray

“Mexico will only accept changes to an international agreement, including NAFTA , if they benefit Mexico and Mexicans”Mexico Foreign Relations Minister, Luis Videgaray

"I want to be precise, and this is based on the conversations that we’ve had today in the White House: Each of the two countries are carrying out their own processes to be in conditions to start the formal trade dialogue towards the end of June or possibly at the start of July," Videgaray said in a news conference at the Mexican Embassy.

"Mexico will only accept changes to an international agreement, including NAFTA , if they benefit Mexico and Mexicans," he later added.

Read: Trump’s NAFTA Revamp Could Near Boiling Point at Mexico Election

Pushing the review into the Mexican election season would add another layer of political complexity and only serve to heighten fears about Mexico losing access to its biggest export market, the U.S.

The Mexican peso has depreciated more than 7 percent against the dollar since Trump won the presidency as investors bet his pledge to narrow the U.S. trade deficit with its southern neighbor will hurt the economy.

Economy Minister Ildefonso Guajardo said last month that extending talks past early 2018 would be “irresponsibly injecting uncertainty after uncertainty” due to the Mexican elections, and the U.S. mid-term congressional vote in November 2018. Specifics of the NAFTA talks will be managed by the economy ministry, Videgaray said Thursday.

Videgaray spoke after meeting Trump senior adviser Jared Kushner; Gary Cohn, the director of Trump’s National Economic Council; and National Security Adviser H.R. McMaster.

He said that he spoke on Wednesday with U.S. Secretary of State Rex Tillerson and will probably meet with him again in Washington in the coming weeks.

Videgaray said he expressed to Trump’s team Mexico’s grave concern about the proposal to separate migrant parents from children at the border, saying that he was told that the administration hasn’t yet made a decision on whether to follow that plan and that at this point it’s only something that they’re thinking about.

He reiterated that Mexico rejects the U.S. proposal to deport undocumented immigrants from other countries to Mexico, saying that the nation has a right to decide who enters its territory.

Guajardo said in February his country will walk away from NAFTA talks if the U.S. insists on slapping duties or quotas on any of its products. Mexico would support updating NAFTA to add digital commerce, telecommunications and aspects of the energy industry that were left out of the initial deal, he said.

Trump has repeatedly promised to levy a significant tax on auto imports from Mexico.

Source: Bloomberg

Related: A Day of Action Sets the Tone for Future Trade

Related White Papers

Download the Paper

Bracing for Instability in Global Trade for 2017
As we move into 2017, global trade management executives need to brace against disrupters that have the potential to send supply chains into tailspin. Download Now!


Download the Paper

Supply Chain Visibility & Total Landed Cost in the Global Supply Chain
Global shippers are well aware of the number of new trade agreements being inked that will make it easier for U.S. organizations to not only source product from emerging markets, but also open the door to deliver goods into quickly growing consumer bases. Download Now!


Download the Paper

Global Economic Outlook 1st Quarter 2017
Over the last 20 years, Mexico has completely embraced free trade, having signed various trade agreements around the world. Now that its GDP is heavily dependent on exports, it is not surprising that the nation is concerned over Donald Trump’s campaign promise to renegotiate NAFTA. Download Now!


Article Topics
Trends   Supply Chain   Global Trade   NAFTA   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Supply Chain News
Planning and Optimizing the Christmas Express Supply Chain
Recently I got an email from the North Pole saying that Santa Claus wanted to talk with me...I will have to admit that when you get a request from the head of the elves it is not something you want to…

Target Acquiring Same-Day Delivery Service Shipt for $550 Million to Fend Off Amazon and Walmart
Target Corp. has agreed to purchase grocery-delivery startup Shipt Inc. for $550 million, stepping up its challenge to Amazon.com Inc. and Walmart Inc. by speeding the rollout of same-day shipping.

Retail Jobs Jumped Nearly 13,000 in November
Retail industry employment increased by an unusually high 12,900 jobs in November over October, according to the National Retail Federation.

Ellen MacArthur & Stella McCartney Campaign to Reduce Retail Fashion Industry Waste
Recently at London's Victoria & Albert Museum, designer Stella McCartney and Dame Ellen MacArthur cohosted the launch of a sustainability report that sets out a new vision for the retail fashion industry.


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles