Mexican peso, Canadian Loonie hit by report US to re-open NAFTA deal

Mexico´s peso hit a fresh record low on Wednesday evening after The Globe and Mail reported that incoming US trade chief Wilbur Ross had notified the Canadian government of the new American administration´s intention of renegotiating two key pieces of the 1994 North American Free Trade Agreement.

The USA´s Wilbur Ross reportedly notified Canada that a formal notification letter to open negotiations on NAFTA would be sent to its Canadian and Mexican partners within days of the upcoming presidential inauguration, on 20 January.

As of 1832 GMT, the US dollar was trading 1.40% higher versus the Mexican peso at 21.81. It was also up by 1.2% against the Canadian dollar, or 'Loonie', currency traders´ nickname for the latter.

According to The Globe and Mail, Washington wants to discuss country of origin rules and the independent dispute-settlement mechanism.

US officials reportedly also had the tripartite dispute panels on their radar, which the report said had long been the focus of complaints due to the unaccountability and because Washington believed they gave too much power to Mexico and Canada.