Mexico: the new Nafta, Amlo and receding policy risks

The announcement of a trilateral trade deal with the US and Canada removes one major source of uncertainty surrounding Mexico’s outlook. The focus will increasingly shift onto the policies of president-elect Andrés Manuel López Obrador, and the evidence so far is that he’s striking a remarkably centrist tone. One consequence is that the peso should hold up well, paving the way for interest rate cuts.