US President
Donald Trump's threat to scrap the Nafta trade pact is little more than a negotiating tactic, aimed at his political base, that should neither scare nor surprise Mexico, the country's foreign minister said on Wednesday as the peso weakened.
In a speech in Phoenix on Tuesday night, Trump reiterated his threats to terminate the North American Free Trade Agreement, saying the pact's future looked bleak. Trump has long called the 1994 pact a bad deal that hurt American workers, saying it should be re-negotiated or ended.
Initial talks to re-negotiate Nafta between Mexico, the United States and Canada ended in Washington this weekend with no sign of a breakthrough and further discussions are due in Mexico City in September.
Following Trump's remarks on Tuesday, Mexico's peso weakened more than 1 per cent in early trading on Wednesday before paring losses, as market jitters on the future of Mexican exports to the United States continue to plague the currency.
Videgaray, speaking on local television, sought to brush off the threat, saying Trump's comments were simply a negotiating tactic and Mexico would keep negotiating as well. The comments were not a surprise, nor would they scare Mexico, he added.
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