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Global protectionism main challenge for Mexico's next gov't: OECD secretary-general

Source: Xinhua| 2018-10-25 20:29:29|Editor: xuxin
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MEXICO CITY, Oct. 24 (Xinhua) -- The eventual escalation of global trade protectionism will be the main challenge for Mexico's next government, Jose Angel Gurria, secretary-general of the Organization for Economic Co-operation and Development (OECD), said Wednesday.

During a talk with reporters, Gurria said the wave of protectionism hovers over the global flow of trade and investment, which in turn triggers great uncertainty for the course of his country's economy.

"You invest in order to sell, and if the subject of sales is not very clear because there is so much protectionism and tariffs, then you will wait until things are clearer," Gurria said.

"Numerous investments have been delayed globally ... so the main risk has to do with the international environment," he said at a forum on market efficiency.

He pointed out that in September the OECD reduced the 2019 global economic growth forecast from 4 to 3.75 percent.

As for Mexico, Gurria said that the agreement on the renegotiated United States-Mexico-Canada Agreement (USMCA) on Sept. 30 was "great news" for helping to scale back uncertainty.

"This is a comparative advantage for a country like Mexico, in a world where there are trade tensions everywhere, for all products, and where the entire world is investigating how they will impose new tariffs on what products," he said.

"The very fact that we are renewing an agreement where all the tariffs are practically at zero, that should signify a motive for great calm and also for attracting investment," Gurria added.

Mexico could be used as a platform for investment, in addition to the USMCA, it has a vast network of trade agreements with several regions of the world, he said.

The government of Mexican President Enrique Pena Nieto concludes on Nov. 30 and President-elect Andres Manuel Lopez Obrador will take office on Dec. 1.

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