Latin America Economics

Revisiting Nafta (again)

Latin America Economics Update
Written by Capital Economics Economist

Concerns over the fate of Nafta have caused more wobbles in Mexican markets over the past day, but the economic implications are less straightforward than much of the commentary suggests. While any move by the US to pull out of Nafta would cause a market shock in Mexico, the economic impact would depend on the nature of the withdrawal and the trading arrangements that are then put in place.