Mexico’s new President, Andres Manuel Lopez Obrador (AMLO), has restarted talks with the USA on the North American Free Trade Agreement. US and Mexican officials have particularly covered how much North American content should be included in cars. According to both Jesus Seade (negotiator of AMLO) and Ildefonso Guajardo (current Economy Minister), negotiation are making good progress. Completion is expected by the end of the month or mid-September latest. A second phase of discussions will focus on agriculture.
By completion of this “bilateral” talk phase between the US and Mexico, we expect the Mexican peso to appreciate further against the greenback and approach the 18.45 range. For now, USD/MXN is trading at 18.96.
By Vincent Mivelaz
