Peso Gains After T-MEC Meeting

Mexico's peso firmed against the dollar following the United States' rejection of an extended term for the T-MEC trade agreement. President Claudia Sheinbaum Pardo asserted that the country's economy remains stable and unconcerned by the U.S. position, which she described as anticipated. The peso appreciated by 0.4% on Thursday, ending a two-day losing streak and closing at 17.48 units per dollar in wholesale trading. At the retail level, the dollar was sold at 17.91 pesos, six cents lower than the previous day. Economy Secretary Marcelo Ebrard Casaubon confirmed the T-MEC will remain in effect until 2036, with annual reviews commencing July 20 when a U.S. delegation visits Mexico. Ebrard noted that the Trump administration had expressed concerns about the trade deficit with Mexico and Canada, but emphasized that Mexico maintains low effective tariffs, with over 80% of its exports to the U.S. being tariff-free. Future discussions will focus on strengthening regional production in strategic sectors like pharmaceuticals and semiconductors to reduce North American imports and address the trade deficit. Security issues have not been part of the T-MEC negotiations.

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The U.S. position was expected by everyone, and there is no nervousness that something will happen with the Mexican economy.