Skip to content
Subscriber Only

Nafta Showdown: Mexico Has a Wild Card to Play

  • Foreign minister is in Washington for delicate trade talks
  • Next week’s Trump-Pena Nieto summit scuttled amid wall spat
Bloomberg business news

Weaker Peso Will Help Mexico Negotiate With U.S.: Yellati

Updated on

Luis Videgaray is in a seemingly unenviable position.

The Mexican foreign minister arrived Tuesday evening in Washington with the task of renegotiating Nafta with a Trump administration that has staked much of its reputation on a pledge to reshape the trade deal and shift jobs back to the U.S. from Mexico. Given just how much Mexico has benefited from the 1994 pact -- its annual trade surplus with the U.S. has soared to over $60 billion -- there’s the general sense that Videgaray has little leverage in the talks, that he will be mostly ceding ground to his American counterparts.