In Light Of NAFTA Uncertainty, Mexican Investors Look South

3/13/2017 Forbes

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AP/Arnulfo Franco

Mexico’s dependence on trade and business with the United States will be hampered by both internal economic drawbacks and the uncertainties stemming from US President Donald Trump’s protectionist discourse over immigration and bilateral trade relations. While Mexico’s economy is closely intertwined with that of the United States and Canada under the North American Free-Trade Agreement (NAFTA), a most-likely thorough renegotiation to the over 20-year old trade bloc is likely to discourage Mexican enterprises from looking north when seeking to expand and develop their operations. Conversely, the uncertainty surrounding President Trump’s policy for Mexico and the Northern Triangle (El Salvador, Guatemala, and Honduras) is likely to forge closer relations between these countries for an improved cooperation over migrant policy and improved trade links.

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