MEXICO CITY: As the US, Mexico and Canada prepare for another round of negotiations to revamp the North American Free Trade Agreement, Mexico’s economy minister on Tuesday urged the parties to stop fixating on trade deficits between the countries.
The trade disparity between the US and Mexico has been a frequent complaint of President Donald Trump, who has threatened to withdraw from NAFTA if he does not get concessions to reduce a US trade deficit of around $64 billion with Mexico.
But Mexican Economy Minister Ildefonso Guajardo insisted that talks to overhaul the 23-year-old trade accord should not center on trade deficits.
“We cannot continue under these optics that our only measurable objective can be the reduction of commercial deficits,” he said during an interview with local television. “Discussing the theme of the deficit would generate a war of protectionism that would dismantle the advance of the agreement.”
NAFTA is a key pillar of the Mexican economy, with some 80 percent of the country’s exports sent to the US. But Guajardo suggested that the demise of the trade agreement could create complications for the US as well. “In the undesirable but possible scenario that the United States leaves the agreement, the possibility that the deficit with Mexico grows is very high.”
The US, Mexico and Canada will hold a fourth round of negotiations from October 11 to October 15 in Washington, DC.
Mexico economy minister downplays trade deficits ahead of NAFTA talks
Mexico economy minister downplays trade deficits ahead of NAFTA talks
New Saudi draft project to regulate direct market entry of listed companies’ subsidiaries
RIYADH: The Saudi Capital Market Authority has launched a draft regulation for the direct listing of subsidiaries of companies already listed on the main market, inviting stakeholders to provide feedback over a 30-day period, according to a statement issued today.
The proposed framework aims to allow subsidiaries of main-market companies to list their shares directly on the main market without undergoing an initial public offering, thereby shortening timelines, streamlining procedures, and reducing the costs associated with listing on the Saudi stock market.
It also seeks to create more investment opportunities in the Saudi financial market, contributing to market depth and product diversification, while maintaining high levels of transparency and protecting investors’ rights.
The proposals enable the issuer and its financial advisor to share information about the company and its financial statements with a select group of potential investors before obtaining CMA approval for the share registration request, allowing them to assess their interest in a direct listing on the main market.
They also allow a specific group of licensed financial advisory firms to prepare research and financial reports, provided these are not published before CMA approval.
The proposed framework emphasizes the importance of proper disclosure by setting out requirements for registering shares on the main market, including submitting a registration document to the CMA.
It also specifies the information that must be included in the registration document, such as the method for determining the reference share price and the risks associated with this method.
Under the draft regulation, securities offering rules, ongoing obligations, and the CMA’s glossary of terms and regulations will be updated to allow this type of listing.
This approach is expected to bring multiple benefits, including maximizing the overall value of the main market with lower risk by listing companies that have greater knowledge and experience of market regulations, as well as deepening the market by increasing the number of listed companies across multiple sectors.
