Menu Search Facebook Twitter
Search Close
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers

Trump Trade Adviser Strikes Conciliatory Tone on Mexico; Peso Firms

Navarro said the 23-year-old trade pact could be transformed into two parallel U.S. bilateral deals with Canada and Mexico, or a modernization of the current trilateral deal

The peso is at its highest value since Trump's election in November, photo: CAPITAL MEDIA/Alejandro Meza
By The News Whatsapp Twitter Facebook Share
10 months ago

WASHINGTON – One of U.S. President Donald Trump’s most protectionist trade advisers struck a more conciliatory tone with Mexico on Wednesday, saying he wanted the two countries and Canada to form a regional manufacturing “powerhouse” with stricter rules of origin.

White House National Economic Council Director Peter Navarro’s comments on Bloomberg News helped boost Mexico’s peso to nearly its highest level since Trump’s election last November.

The comments indicate that Navarro, a strong voice behind Trump’s calls during the campaign for steep tariffs on goods from Mexico and China to help reduce U.S. trade deficits, was now seeking to cooperate with Mexico to the benefit of both countries. Navarro said he wanted to strengthen manufacturing in the three countries through renegotiation of the North American Free Trade Agreement (NAFTA).

Navarro said the 23-year-old trade pact could be transformed into two parallel U.S. bilateral deals with Canada and Mexico, or a modernization of the current trilateral deal.

“We have a tremendous opportunity, with Mexico in particular, to use higher rules of origin to develop a mutually beneficial regional powerhouse where workers and manufacturers on both sides of the border will benefit enormously,” Bloomberg quoted Navarro as saying. “It’s just as much in their interests as it is in our interests to increase the rules of origin.”

In automotive products, the biggest area of manufactured goods trade between the United States and Mexico, vehicles must have 62.5 percent North American content to qualify for NAFTA’s tariff-free benefits. Navarro has said that rule allows North American manufacturers to use too many Asian parts.

Both Mexican and Canadian officials say they want to renegotiate and modernize NAFTA.

U.S. Commerce Secretary Wilbur Ross said he would trigger notification to Congress to start the NAFTA renegotiation process by late March, with substantive talks beginning later this year.

The Mexican peso, which had fallen sharply after Trump’s election on fears that trade between the two countries would be disrupted, had strengthened to below 19.5 to the dollar at midday.

With the Trump administration filling out with more voices on trade issues, it is unclear how much influence Navarro will have.

Ross has been designated to take a leading role on trade issues, while U.S. Trade Representative nominee Robert Lighthizer told senators in his confirmation hearing on Tuesday that he would have full statutory authority to negotiate trade deals.

Lighthizer, a veteran trade lawyer and former USTR official in the 1980s, said he would “sort out” differences within the administration over trade.


Comments Whatsapp Twitter Facebook Share
More From The News

Medicaid work mandate will create uncert ...

2 days ago
Latest News

California mudslides death toll rises to ...

3 days ago

World media struggle to translate Trump' ...

3 days ago
Latest News

Trump defends vulgar remarks while partl ...

3 days ago
Most Popular

Inflation-hit Venezuela to Print Bigger ...

By The News

US Expands Tough ‘Dolphin-Safe’ Rules Fo ...

By The News

South Korean Export Bank to Give $200 mi ...

By The News

Mexico Nissan Defends Tsuru After Tester ...

By The News

As Oil Price Bounces Off Lows, Global St ...

By The News