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Mexico & Nafta - February 2017 (ISSN 1741-444X)

Defining Nafta renegotiation strategy

US President Donald Trump has once again made clear that one of this new administration’s priorities is to renegotiate the terms of the North American Free Trade Agreement (Nafta) to secure better terms of trade. He is seeking to protect US manufacturing from its more competitive Mexican counterpart. Trump has warned that if this cannot be achieved, then his administration would move to withdraw the US from Nafta. Faced with this scenario the Mexican government led by President Enrique Peña Nieto has been left with little option but to come up with a renegotiation strategy that will help to protect its national economic interests. This strategy looks to be focused on trying to secure the widest possible tariff-free access to all Nafta markets including the US’s in a renegotiated deal, but failing that to diversify Mexico’s export markets.

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