World Economy

Mexico's president says opportunity to update NAFTA to benefit all 3 countries

Key Points
  • Mexican and Canadian leaders spoke by phone
  • Seek to ensure modernization of trade pact is successful
  • In separate interview Mexican central bank governor says peso undervalued
Mexican President Enriique Peña Nieto speaking at WEF in Davos, Switzerland
Justin Solomon | CNBC

Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau spoke on Thursday about the NAFTA trade deal and agreed there was an opportunity to update the accord to the mutual benefit of all signatories, the Mexican government said.

In a statement, Pena Nieto's office said he and Trudeau had spoken on Thursday afternoon and were ready to begin the process of dialogue between Mexico, Canada and the United States, the
members of the North American Free Trade Agreement (NAFTA).

"Finally, they agreed to remain in close contact to ensure the process of (NAFTA) modernization is successful for the benefit of both nations," Pena Nieto's office said.

U.S. President Donald Trump rattled Mexico and Canada on Wednesday when his administration said he had been considering an executive order to withdraw from NAFTA. On Thursday, Trump
said that he aimed to renegotiate the deal with the two.

In a separate interview, Agustin Carstens, governor of the Bank of Mexico, said the peso was undervalued.

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