Today, the preliminary agreement between the US and Mexico in the long discussed NAFTA renegotiation marked a historic moment as a new tone of understanding and collaboration between both countries was set.
During a press conference held in the White House between Donald Trump, President of the US, and Enrique Peña Nieto, President of Mexico, via conference call, both Presidents expressed that they are close to signing the final trade agreement regarding the modernization of NAFTA, although no official date was revealed. Trump claimed that the new agreement would have a new name such as the US-Mexico Trade Agreement to leave behind the NAFTA name that, according to him, “has a bad connotation because the US was hit very badly by NAFTA for many years and now it is a very good deal for both countries.”
During the conference call both presidents mentioned the importance of reaching a positive bilateral interaction, without leaving Canada behind. Trump mentioned that the meetings between the US and Mexico’s negotiation teams have been, “very special for our manufacturers and farmers, for both countries and for all the people that have worked to create better jobs. The new agreement represents a much fairer bill,” Trump said.
No details regarding the official signing of the new agreement were revealed, but the automotive and food industries were mentioned by Trump, as well as his position on tariffs for both. While the energy industry has been referred as the crown jewel of the NAFTA renegotiations, it is yet to be seen how the final agreement will affect imports and exports of energy between countries, how the tariffs on raw materials may affect clean energy’s costs (such as cost of PV parks due to aluminum tariffs) and how the private industry will react to these and other factors.
During the conference call both presidents urged Justin Trudeau, Prime Minister of Canada, to join the final agreement for the benefit of the North American region. Later on, Peña Nieto tweeted that he had already talked to Trudeau about the current state of the agreement and its updates, as well as the importance of Canada joining the process to have a positive trilateral negotiation officially concluded this week.
For more articles on Mexico’s energy industry, check out our blog!