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Joint Statement by the Secretary of the Treasury And Finance Minister of Mexico | U.S. Department of the Treasury

Joint Statement by the Secretary of the Treasury And Finance
Minister of Mexico
October 17, 2018

Washington – U.S. Treasury Secretary Steven T. Mnuchin and Mexican Finance Minister Jose

Antonio Gonzalez Anaya issued the following statement today which encapsulates initiatives
and work streams underway between Treasury and the Mexican Finance Ministry, including an
update to the framework for financial support between Treasury, the Government of Mexico,
and the Banco de Mexico:
We met today to discuss areas of further cooperation on financial and economic issues.
The close coordination between our ministries, Treasury and Hacienda, is reflective of the
mutual benefits derived from continued economic growth and financial stability in our two

Today, we signed a Memorandum of Understanding memorializing our decision to update our
Exchange Stabilization Agreement (ESA) – which is a framework for a financial support facility
between our governments.
We continue to value the very close economic and financial cooperation that exists between our
countries to help promote macroeconomic growth and stability, including on exchange rates.
The United States and Mexico have had a standing framework for financial support since
1941. The ESA was last updated 24 years ago, in the context of the North American Free Trade
Agreement (NAFTA). Today, we have decided to amend the ESA to increase the potential size of
the Treasury’s swap line with Mexico, from the existing $3 billion to $9 billion, reflecting the
tremendous growth in trade and financial flows that have occurred between our economies
over the last 24 years. This facility will continue to be complemented by a swap line of $3 billion
with the Federal Reserve.




Joint Statement by the Secretary of the Treasury And Finance Minister of Mexico | U.S. Department of the Treasury

We look forward to our governments signing the U.S.-Mexico-Canada Agreement (USMCA) and
its subsequent approval by both our legislatures. The Financial Services Chapter includes
commitments to liberalize financial services markets and facilitate a level playing field for U.S.,
Mexican, and Canadian financial services providers, including a first-ever prohibition on local
data storage and processing requirements and expanded cross-border commitments. The
chapter also includes an Investor-State Dispute Settlement mechanism between the United
States and Mexico, specific to the financial services sector.
The currency chapter reflects the conviction that market-determined exchange rates are
fundamental for smooth macroeconomic adjustment, and that the parties to the USMCA share
the objective of pursuing policies that strengthen underlying economic fundamentals, foster
growth and transparency which reinforce the conditions for macroeconomic and exchange rate
stability, and avoid unsustainable external imbalances. The parties commit to refrain from
competitive devaluations and to foster the transparency of economic data for exchange rate
markets. When the USMCA enters into force, we will initiate a special consultation mechanism to
review currency and related economic policies.

The United States and Mexico are strongly committed to supporting growth and development
on our shared border. We are confident that, in carrying out its mission, the North American
Development Bank (NADB) can do more to advance the economic well-being of the people of
the United States and Mexico.
Our governments are committed to strengthening the Bank’s ability to improve infrastructure
and create economic opportunities for the benefit of the border communities, improving the
quality of life along both sides of our shared border. We will continue to analyze the best
strategic and financial mechanisms to improve NADB’s ability to fulfill these ambitions.

We are proactively exploring how Treasury’s O ice of Technical Assistance can support Mexico
to build upon Hacienda’s already impressive technical capacities to strengthen Mexico’s
priorities for economic and financial sector policy reforms.
Treasury and Hacienda look forward to enhanced regulatory cooperation on financial sector
developments; and to continuing joint e orts to combat money laundering and corruption, and
to disrupting the illicit financial activity of drug tra icking organizations.



Joint Statement by the Secretary of the Treasury And Finance Minister of Mexico | U.S. Department of the Treasury

Also, Treasury and Hacienda have had a strong dialogue on helping to meet our mutual
objectives for prosperity in the Northern Triangle of Central America – in particular, we maintain
active coordination between our ministries and multilateral institutions to support pro-growth
economic reforms to increase median incomes and generate employment in this region.


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