Mexico's President blames Trump for the depreciation of the Mexican peso

Mexican President Claudia Sheinbaum attributed the recent depreciation of the Mexican peso to statements by Donald Trump about renegotiating the trade agreement between Mexico and the United States. According to Yahoo, last week alone, the currency registered losses of 2.2%, its worst performance since late August.

According to Forbes, despite Trump's protectionism, Sheinbaum assured that the Free Trade Agreement between Mexico, the United States and Canada, the T-MEC, is not at risk, no matter who wins the elections.

However, according to CNN, both Kamala Harris and Donald Trump have indicated that they will use the USMCA review process if they are victorious. Harris was one of ten senators who voted against the treaty at the time, believing that it did not go far enough in terms of environmental and labor protections.

Sheinbaum said that the depreciation of the peso is not related to the Mexican economy, but to international factors. The president pointed to Trump's statements and the lowering of interest rates in Japan, for example.

“Upon taking office, I will formally notify Mexico and Canada of my intention to invoke the six-year renegotiation provision of the USMCA that I put in place,” Trump said, according to CNN, during a speech at the Economic Club of Detroit.

Sheinbaum, however, believes that Trump's statements are part of his campaign speech and do not represent a real risk of cancelling the trade agreement, Forbes notes.

Sheinbaum also stated that U.S. businessmen are committed to economic integration between the two countries. In fact, some confirmed announcements of an investment of some $20 billion to the Mexican president during a meeting on October 15 at the National Palace, Yahoo reports.

Sheinbaum also downplayed concerns about the automotive sector, which has been questioned by Trump, who suggested imposing more tariffs. On this issue, the US is also concerned about the installation of a Chinese electric car plant in Mexico, as many believe that the Asian country can use it as a means of evading taxes.

As Forbes recalls, the United States relies heavily on Mexico as its main trading partner, and the two countries have a closely intertwined economic relationship. That is why Sheinbaum is confident that relations between Mexico and the United States will be good, regardless of the outcome of the polls.

"Regardless of who wins, there will be a good relationship. I am sure of this because there is integration and, furthermore, both the Democratic Party candidate and the Republican Party candidate know it," Sheinbaum said, according to Brújula Política.

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