U.S. President-elect Trump has been very vocal about the southern neighbor: Mexico.
Now, Mexico has a new foreign minister who is no stranger to controversy, or to Donald Trump.
CGTN’s Franc Contreras explains.
Mexico's president appoints Luis Videgaray as new foreign ministerU.S. President-elect Trump has been very vocal about the southern neighbor: Mexico. Now, Mexico has a new foreign minister who is no stranger to controversy, or to Donald Trump. CGTN’s Franc Contreras explains.
During his first public appearance in 2017, Mexican President Enrique Pena Nieto announced that his country will have a new foreign affairs secretary. Luis Videgaray, who until recently served as finance secretary, will be Mexico’s point person when it comes to trade issues with the incoming Trump administration in Washington, D.C.
Videgaray was the cabinet official who coordinated presidential nominee Trump’s highly controversial visit to Mexico in late August in which he met Pena Nieto. Trump had been slamming Mexico at every opportunity, especially on issues of immigration and trade.
Following the ensuing political firestorm in Mexico, Videgaray resigned his post as Mexico’s treasury secretary. But despite his admitted lack of experience, he is now back as Mexico’s top diplomat.
Also, this week, following Trump’s Twitter messages about U.S. auto factories in Mexico, the Ford Motor Company, canceled its plans to build a one-point-six billion dollar small-car assembly plant in Mexico. Trump had threatened to impose tariffs on cars made in Mexico by General Motors.
Donald Trump quickly thanked Ford, the nation’s second-largest automaker, for the decision, which he said would create jobs in the U.S.
Since Trump’s election victory in November, jitters have rippled through the Mexican economy about the fate of the North American Free Trade Agreement.
In the lead-up to the passage of NAFTA, Luis de la Calle was one of Mexico’s key trade strategists. Now a consultant to foreign investors, he says Ford’s decision to cut short its investment plans in Mexico sends a chilling signal to U.S. investors.
Following Ford’s decision, the Mexican peso hit all-time record lows against the U.S. dollar, which is putting, even more, pressure on Mexico’s already weak economy.
As Donald Trump prepares for inauguration day in about two weeks, Mexicans are bracing for a new wave of inflation that’s expected to further weaken their purchasing power.
Looking long term, economists question what sort of lasting damage could occur to Mexico’s relationship with its largest trading partner.
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