Luis Videgaray Named Mexico Foreign Minister -- Update
January 04 2017 - 7:36PM
Dow Jones News
By Anthony Harrup
MEXICO CITY -- Mexican President Enrique Peña Nieto on Wednesday
named a former official who has reaped praise from Donald Trump to
be Mexico's new foreign minister, as the country prepares for a
complex new relationship with the U.S.
Luis Videgaray, a former finance minister and close aide of Mr.
Peña Nieto, played a key role in bringing about Mr. Trump's trip to
Mexico in late August. He resigned the following week amid the
uproar caused by the visit of the then Republican candidate.
"I think Videgaray was the best option to deal with Trump,
although it's not going to be easy," said Jorge Chabat, a professor
of international relations at Mexico's CIDE university.
Mexico's relationship with the U.S. has been its most important
for two centuries, involving not just foreign policy but the
country's economic and political stability, Mr. Chabat said, in
attributing Wednesday's appointment to preparation for the incoming
U.S. administration.
During the campaign, Mr. Trump said he would either renegotiate
the North American Free Trade Agreement -- which joins the U.S.,
Mexico and Canada -- with better terms for the U.S., or pull out of
the pact.
He also said he would build a wall along the U.S.-Mexican border
to keep migrants out and make Mexico pay for it, and expel
unauthorized immigrants from the U.S.
Concerns about Mr. Trump's proposals and his criticisms of
Mexico prompted the government to arrange the August meeting, which
generated considerable criticism in Mexico at the time and was seen
as damaging the government's standing.
Now, with Mr. Trump just weeks away from taking office, Mr.
Videgaray, who has a doctorate in economics from MIT, will be in
charge of Mexico's foreign policy and the relationship with its top
trading partner.
"The instruction to Mr. Videgaray is to accelerate dialogue and
contacts so that from the first day of the new [U.S.]
administration, the groundwork can be set for a constructive
working relationship," Mr. Peña Nieto said. He also called on the
new foreign minister to further develop relations with Central and
Latin America, as well as with the Group of 20, of which Mexico is
a member.
A discouraging sign for bilateral relations came Tuesday when
Ford Motor Co. said it was canceling a planned $1.6 billion
investment in a new assembly plant in Mexico, and instead will
invest $700 million in a new plant in Michigan.
The decision sent the Mexican peso to new lows against the U.S.
dollar, as it raised fears that the Trump government will follow
through with more protectionist measures that could hurt Mexico's
export-oriented manufacturing sector.
The currency closed in New York at 21.4486 to the dollar on
Wednesday, after closing at 21.1107 the day before.
Mexico sends around 80% of its exports to the U.S. and receives
about half of its foreign direct investment from north of the
border.
Mr. Trump took to Twitter to praise Mr. Videgaray the day after
the latter's resignation as finance minister in September.
"Mexico has lost a brilliant finance minister and wonderful man
who I know is highly respected by President Peña Nieto," he said.
"With Luis, Mexico and the U.S. would have made wonderful deals
together -- where both Mexico and the U.S. would have
benefited."
Mr. Videgaray had been widely seen as the brains behind Mr. Peña
Nieto and the driving force behind a series of high-profile
overhauls in the past few years, including opening Mexico's closed
oil industry to private investment for the first time since
1938.
His appointment to the new post drew some criticism on
Wednesday. "He isn't a career diplomat. He could have continued
operating from outside the cabinet," said Alejandro Schtulmann,
head of analysis at the Empra consulting firm.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
January 04, 2017 19:21 ET (00:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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