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10 February, 2017

Multinationals in Mexico say Trump unlikely to tear apart NAFTA

Top executives said they have no intention of reducing their activities in Mexico

An organization comprising the 50 largest multinational companies operating in Mexico said Wednesday that they would pay close attention to the actions taken by U.S. President Donald Trump's administration but were not overly concerned and regarded the potential dismantling of the North American Free Trade Agreement (NAFTA) as unviable.

"It's a reason to be very carefully observant, but we're convinced that it's a great opportunity for Mexico to reassess its strategic pillars in the trade area," the president of the Executive Council on Global Enterprises (CEEG), Frederic Garcia, told EFE.

The CEEG comprises nearly 50 multinational firms that are market leaders in Mexico, including Coca-Cola, ExxonMobil and Microsoft, companies that provide 500,000 direct jobs and 1.5 million indirect jobs and account for 10 percent of the country's gross domestic product (GDP), 11 percent of its exports and 40 percent of total foreign direct investment.

In less than 15 years, the CEEG intends to bring about a more competitive Mexico by making the country more globalized, efficient and inclusive, Garcia said.

Trump has repeatedly criticized NAFTA as a destroyer of American jobs.

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