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Weekly Report - 04 October 2018 (WR-18-39)
MEXICO: Nafta deal hailed by authorities, but questions remain
“This is a good night for Mexico and for North America.” With these words Mexico’s foreign minister, Luis Videgaray Caso, greeted the 30 September announcement by US and Canadian government officials that they had reached an agreement on bilateral terms of trade that would allow for Canada to adhere to a new trilateral trade accord that will replace the North American Free Trade Agreement (Nafta). Canada’s adherence to the so-called US-Mexico-Canada Agreement (USMCA) is seen as a boon for Mexico as it means that it will maintain tariff-free access to the US and Canadian markets. Yet questions remain over whether the new agreement offers too many concessions to the US that will undermine Mexico’s competitive advantages for years to come.
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