Mexico Considers Retaliation Should US Leave NAFTA Lorne Matalon - KJZZ Fronteras
go to original December 27, 2016

Trump victory puts pressure on Mexico over NAFTA trade deal (euronews Business)

Mexicans are anxious about the future of the North American Free Trade Agreement, and how the incoming administration of U.S. President-elect Donald Trump may seek to change or even withdraw from the agreement.

Mexican officials are now speaking with Asian nations about how trade between Mexico and Asia might change in a post-NAFTA era. Mexican analysts have expressed concern that new investment may slow down due to uncertainty over the agreement.

"It's the chilling effect on investment," said Federico Estévez, a political scientist at Instituto Tecnológico Autónomo de Mexico, a leading Mexican university whose alumni line the halls of power in Mexico. "We've basically turned into an industrial economy on the basis of NAFTA.

NAFTA took effect Jan. 1, 1994, aiming to remove many tariffs and integrate major sectors of the economies of Canada, the U.S. and Mexico.

"It's going to have to be Mexico first, more self-reliant," Estévez said. He said Trump's victory is prompting some strident voices in Mexico, particularly on the left, to double down on their own nationalist goals, which include reducing economic dependence on the U.S.

Last month, governor with Mexico's Central Bank, Javier Guzman Calafell, told an audience that that the economic challenges for Mexico are pressing. He said that high inflation is hindering investment and complicating long-term planning.

Read the rest at Fronteras Desk

Related: Here's Mexico's Plan to Gain Leverage with Trump (Reuters)

Related: Mexico Ready to Engage with Trump: NAFTA Top Concern (TruNews)

Related: Mexican Farmers See Opportunity to Renegotiate NAFTA After Trump (teleSUR)

Related: One Industry Will Keep Holding North America Together, Trump or No Trump (The Yucatan Times)

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