Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Trump says impeachment inquiry could derail trade deal, Mexico markets slump

09/25/2019 | 03:12pm EST
U.S. President Trump visits Derco Aerospace in Milwaukee, Wisconsin

WASHINGTON/MEXICO CITY (Reuters) - U.S. President Donald Trump warned on Wednesday that an impeachment inquiry against him could derail congressional approval of a North America trade pact, dragging down Mexico's peso and stock market as investors fled riskier assets.

While U.S. Trade Representative Robert Lighthizer said he was confident the U.S-Mexico-Canada trade agreement (USMCA) would come up for a vote and pass, Trump told him in front of reporters that he knows "these people" better, referring to Democrats.

"I don't think Nancy Pelosi will have time," said Trump. "She's wasting her time on a, you know let's use a word that they used to use a lot: a 'manufactured crisis.'"

Pelosi announced on Tuesday that Democrats in the House of Representatives had launched a formal impeachment inquiry into Trump, accusing him of seeking foreign help to smear Democratic rival Joe Biden ahead of next year's election.

"I don't know whether or not they're going to have time to do any deals," Trump said. "I don't think they can do any deals. You know, we were working on guns, gun safety."

Canada, the United States and Mexico signed the agreement last year to replace the trillion-dollar North American Free Trade Agreement (NAFTA), and it must now be ratified.

Lighthizer later said was confident USMCA would come up for a vote because it is an extremely good agreement and “if it did not pass it would be a catastrophe for our economy.”

He said the legislation should be modified to address Democrats' concerns, including reservations about the enforceability of the labor and environment provisions.

MEXICO, CANADA LEADERS URGE RATIFICATION

Mexican President Andres Manuel Lopez Obrador said the deal should be passed by the U.S. Congress quickly, not left until closer to the November 2020 U.S. presidential election.

"It's better if this gets resolved soon. It's in the interest of all three nations," Lopez Obrador told journalists at a daily media briefing.

Canadian Prime Minister Justin Trudeau said, "We've always been focused on the ratification of the USMCA in a way that tries to go beyond the partisan differences in the United States."

"Our focus remains on ensuring that this deal ... goes forward and that’s what we are going to remain focused on," said Trudeau.

Mexico's peso slipped as much as 0.9% versus the dollar to an almost three-week low, and the benchmark Mexican stock index <.MXX> fell as much 1.24%, with banks citing the impeachment inquiry as sapping investor appetite for risk. Both the peso and stock index recovered slightly in later trading.

The Canadian dollar <CAD=D4> has been little changed at about 1.3260 to the U.S. dollar, or 75.41 U.S. cents since the launch of a formal impeachment inquiry. The Toronto stock market <.GSPTSE> has fallen about 0.7% since Monday as lower oil prices weighed on energy stocks.

Capital Alpha Partners said it lowered its estimated likelihood of passage for USMCA to 30%. "USMCA is on life support," said James Lucier, analyst for the firm.

(Reporting by Jeff Mason; Writing by Mary Milliken and Anthony Espisito; Additional reporting by Andrea Shalal in Washington; David Ljunggren in Delta, British Columbia, Fergal Smith in Toronto, and Miguel Angel Lopez in Mexico City; Editing by Tom Brown and Cynthia Osterman)

By Jeff Mason and Anthony Esposito


© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.00% 0.7827 Delayed Quote.-0.01%
EURO / US DOLLAR (EUR/USD) 0.09% 1.20772 Delayed Quote.-0.52%
LONDON BRENT OIL -0.42% 54.64 Delayed Quote.9.17%
MEXICO IPC -0.31% 45868.24 Real-time Quote.4.37%
US DOLLAR / CANADIAN DOLLAR (USD/CAD) -0.03% 1.27669 Delayed Quote.-0.63%
Latest news "Economy & Forex"
05:58pCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China's postal industry sees business volume surge in 2020
PU
05:52pJanet Yellen to say U.S. does not seek weaker dollar, Wall Street Journal reports
RE
05:44pTreasury nominee Janet Yellen to say U.S. does not seek weaker dollar - WSJ
RE
03:35pGitHub apologizes for firing Jewish employee who warned of Nazis in U.S. Capitol -TechCrunch
RE
03:35pSome users report broadcasting problems with CBS, other television service providers
RE
03:26pMSC MEDITERRANEAN SHIPPING : New Zealand's Apple Exporting Season Returns – Get On Board with MSC
PU
02:34pVeolia says that the 29.9% it owns in suez's capital is not and will not be for sale - statement
RE
01:58pFrance reports 16,642 new confirmed covid-19 cases in past 24 hours, from 21,406 on saturday - public health authority
RE
01:56pFrance reports 141 new coronavirus deaths on sunday - health authority
RE
01:49pCoronavirus - france has vaccinated 422,127 people, up from 413,046 0n saturday - bfm tv citing health ministry
RE
Latest news "Economy & Forex"