Mexico will not accept tariffs or quotas when renegotiating the North American Free Trade Agreement (NAFTA) with the United States, the foreign minister said on Tuesday, according to Reuters report.
“The free trade agreement should be a free trade agreement,” said Foreign Minister Luis Videgaray said at a session in Mexico’s Senate. “Mexico will not accept tariffs, quotas, or restrictions of free trade.”
President Trump maintains that NAFTA is a bad deal for the United States and wants NAFTA to be renegotiated. NAFTA talks may begin later this year.
President Trump has also spoken positively about a border adjustment tax being pushed by Republicans in Congress as a way to boost exports. But that proposal seems to be dividing American businesses. Critics say the planned 20-percent tax on imports could be passed along in higher prices to consumers, including manufacturers that rely on imported goods to make their products.
Some critics have warned of a potential global trade war that could sharply curtail U.S. and world economic growth. Advocates say U.S. exporters will gain as their revenue will be excluded from federal taxes. They say the tax on imports will encourage domestic production and cause the already strong dollar to rise, offsetting upward pressure on import prices.
