Although everyone said an agreement on NAFTA was imminent, it seems they overestimated their progress. The current Mexico administration had until last week to finalize an agreement to be ratified by President Enrique Peña Nieto but nothing was resolved. Moreover, though it seemed negotiators could start finding common ground, looming threats on tariffs have once again complicated the situation.
Want to know more about last week’s news? Buckle up!
The Last Oomph
President Enrique Peña Nieto had until August 26 to finalize NAFTA negotiations. Now, the task will fall to President-Elect Andrés Manuel López Obrador (AMLO) who will have to ratify the agreement with US President Donald Trump and Canadian Prime Minister Justin Trudeau.
The US has postponed its decision to slap tariffs on vehicle imports according to US Trade Minister Wilbur Ross. Results may not be disclosed until next year, although Trump’s insistence on the matter is an obstacle for negotiations.
According to Jesús Seade, Chief Negotiator appointed by AMLO, the Sunset Clause will be left out of the negotiation thus clearing path for a swifter deal.
Even though Volkswagen will move production of Golf out of Puebla, auto part companies are not worried. The OEM is expected to bring a new model to replace Golf and suppliers are looking to diversify their operations with other automakers in the region.
Mexico received the highest level of foreign direct investment during 1H18 since 2013. Most of the cashflow came from reinvestments from established players and the country with the highest participation was the US with 39.1 percent of the total foreign investment in the country.
Coach company Grupo ADO ditches name for Mobility ADO looking to become a stronger participant in the transportation sector. The company is now hoping to become the operator of the Mexico-Toluca Interurban Train.