As Mexico-U.S. talks progress, markets rise on hopes a deal could be close

Credit: Reuters Studio
Published on June 7, 2019 - Duration: 01:49s

As Mexico-U.S. talks progress, markets rise on hopes a deal could be close

Markets have been cheered by optimism that a US/Mexico deal could be close after a second day of talks on trade and migration on Thursday.

But, as Pascale Davies reports, it's still unclear if a Mexican pledge to curb migration flows is enough to persuade the Trump administration to postpone tariffs.


As Mexico-U.S. talks progress, markets rise on hopes a deal could be close

As President Donald Trump's Monday deadline for new tariffs on Mexico draws near, there is a glimmer of hope a deal could be reached after talks on Thursday appeared to be going somewhere.

And that's got markets excited.

Trump vowed last week to slap America's southern neighbour with a five percent tariff on goods it sends the to U.S., unless Mexico stops the flow of migrants crossing the border.

Mexico said on Thursday it will ramp up security by deploying 6,000 members of its National Guard to its southern border with Guatemala.

(SOUNDBITE) (Spanish) MEXICAN PRESIDENT ANDRES MANUEL LOPEZ OBRADOR, SAYING: "We want to have a good neighbourly relationship with the United States, but at the same time defending the dignity of Mexico." The U.S. Vice President said he was encouraged Mexican officials were playing ball but the ultimate decision won't be his.

(SOUNDBITE) (English) U.S. VICE PRESIDENT MIKE PENCE, SAYING: "But it will be a matter for the President to consider -- what they are offering is enough to evaluate those proposals." The sanctions threat on agricultural to industrial goods has made farmers on both sides of the border hot and bothered.

Especially the meat sector.

Every year, more than one million cows are exported by Mexico to the U.S. And U.S. pork exports to Mexico are in high demand.

But it's also sent shockwaves through the global economy.

Though European stocks-, especially car makers, were recovering on Friday, on hopes of progress.

German giant BMW, which produces its 3 series in Mexico, said it saw no reason to change its plans there.

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