Potential withdrawal from the North American Free Trade Agreement

November, 2016

One of the principal losers in the recent presidential election in the United States of America (U.S.) was undoubtedly the North American Free Trade Agreement (NAFTA).

Its economic benefits minimized or overlooked and its imperfections and unfulfilled promises exaggerated, it was subject to a successful but very unfair demonization.

The threat is latent of an eventual withdrawal from NAFTA by the U.S. if it is found impossible to renegotiate its terms. It remains to be seen if such withdrawal is a real possibility or is only a "campaign promise"; nevertheless, certain recent events indicate that a renegotiation will be formally requested although its scope is uncertain.

A withdrawal from NAFTA by the U.S. would be a mistake, with adverse economic effects for both Mexico and the U.S., the significance of which, once evaluated in detail, should be sufficient to dissuade any potential withdrawal. The reasons we make this assessment can be found in the full document link provided below.

For further information, contact our expert:

Luis Miguel Jiménez, Partner:

+ 52 (55) 5258-1058, lmjimenez@vwys.com.mx 

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