According to the latest wires, via Bloomberg, Mexico’s top trade negotiator doubled down on threats to break off talks to rework Nafta if the US decides to impose tariffs in their products.
Key Highlights:
•Trump has lambasted the accord -- which also includes Canada -- as unfair and responsible for a “massive” imbalance favoring Mexico. It last year shipped $294 billion worth of goods north while the U.S. sent $231 billion south.
•Without Nafta, trade between Mexico and the U.S. would be ruled by World Trade Organization strictures limiting tariffs either country can impose on the other, with the average for Mexico at around 3 percent, according to the Mexico City-based political-risk advisory firm Empra.
•According the Guajardo; The border-adjustment tax is something that’s squarely a domestic fiscal matter for the U.S. and in addition; complicated to implement.
Meanwhile, the USD/MXN exotic bounces off lows - as of writing, trading at 19.83. However, bears seem in control targeting the 200-DMA. If prices open and close above 19.98 (high Feb.23) the bearish price action could be diluted and doors opened to target the 100-DMA near 20.29.
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