Mexico To Step Away From NAFTA If Negotiation Will Not Benefit All Parties

Mexican Foreign Minister Luis Videgaray said during an interview with Bloomberg that Mexico is willing to step away from North American Free Trade Agreement if NAFTA negotiations don't benefit all parties involved. But said Mexico is not approaching in a way pulling its leverage from other parties and hurting itself.

It should be in a constructive process, Mexican Foreign Minister Luis Videgaray added. He also emphasized that Mexico's relationship with the U.S. goes beyond trade. It even affects the politics of Mexico. The presidential elections will be held in 2018 in which NAFTA could be a wedge issue.

CNN Money reported that Mexican Foreign Minister Luis Videgaray said negotiations of Mexico, Canada, and the U.S. over NAFTA could begin in the summer and he anticipated it. He also said Mexican and U.S. governments must work constructively to make relations with the U.S. and trade key issue. The Mexico-U.S. relationship is going to be an important part of the political environment in Mexico as it approaches an election cycle, he added.

Mexican Foreign Minister Luis Videgaray also said that negotiation with the agreement is beneficial to all parties. It is surely a win-win situation for Mexico, Canada, and the United States. The trilateral deal is expected to have formal negotiations to start during summer according to Fortune.

Included in the list of objectives already prepared by the Mexican government on renegotiating NAFTA is the protection of Mexicans in the United States and other issues surrounding security and migration. Regarding trade, Videgaray said that the primary goal of the Mexican government under President Enrique Pena Nieto is for the "Free Trade Agreement to remain free trade". He is optimistic to say that Free Trade Agreement can be improved. He said the agreement is a 20-year-old agreement and many things can be done better. 20 years are enough to be learned, the world has changed the only thing that would remain is the free trade agreement.

All investors from Canada, Mexico, and U.S. are under the law and protection of the agreement. It would also include things that did not exist before such as electronic commerce, or sectors from Mexican economy that were completely closed and now after recent reforms have been opened.