Mexican And US Presidents Agree To Extend Trade Agreement Time Limit

JAKARTA - Mexican President Claudia Sheinbaum said on Monday she had spoken with United States President Donald Trump on Saturday and agreed to extend the deadline for the trade deal for "a few weeks" to discuss pending issues with Washington.

In July, the US agreed to postpone the tariff increase for some of Mexico's goods from 25 percent to 30 percent for 90 days, while the two countries continued negotiations aimed at reaching a new trade agreement.

The delay is scheduled to expire this week.

"I want to make sure that November 1 didn't arrive without us communicating and we agree that our team is still working," President Sheinbaum told a news conference, adding that it aims to resolve the 54 remaining trade barriers.

"We practically cover this problem," he said.

Mexican Peso rose 0.29 percent to 18.38 per dollar following President Sheinbaum's comments.

Mexico has largely avoided the tariff burden of the Trump Administration thanks to the USMCA free trade agreement with the US and Canada which will be reviewed next year.

In early October, President Sheinbaum said he believed Mexico would strike a lucrative deal with the US over trade, planning that he plans to unveil new advances in electric vehicle development projects, semiconductors, satellites, drones and artificial intelligence laboratories.

"We continue to work and there is no situation in the near future where there will be a special tariff on November 1," said President Sheinbaum.

Last week, President Trump said he ended trade negotiations with Canada, with the White House expressing frustration with the development of negotiations.

When asked how Mexico would react and whether Mexico could negotiate separately with Canada, Sheinbaum said last week, "Don't rush."