Companies in Mexico to Face Tough Market in 2017 Xinhua
go to original January 13, 2017

Mexico is worried about the impact of Trump's trade policies on its economy. (Wall Street Journal)

Mexican companies face a tough marked in 2017 by low economic growth, a weakening peso, and uncertain ties with Mexico's biggest trade partner, the United States, credit rating agency Moody's warns.

In a report titled "Mexican corporates face difficult 2017 as growth slows and interest rates rise," the agency said how well Mexican companies fare in the coming year will largely depend on the incoming administration of U.S. President-elect Donald Trump.

"Slowing growth, a weaker currency, accelerating inflation, rising interest rates and an uncertain trade relationship with the U.S. are among the risks that Mexican corporates face in 2017," said the agency.

"The magnitude of these risks will depend on the extent to which the new U.S. administration pursues and implements policies such as renegotiating NAFTA and imposing import tariffs," both key platforms of Trump's campaign.

Trump claims the North American Free Trade Agreement (NAFTA), which went into effect between Mexico, the U.S. and Canada in 1994, unfairly benefits Mexico.

Any changes to the free trade agreement could negatively impact Mexican exporters and billions of dollars in remittances Mexican migrants send back to Mexico each year, Moody's Nymia Almeida says in the report.

Read the rest at Xinhua

Related: Mexico Will 'Immediately' Respond to Any U.S. Border Tax: Economy Minister (Reuters)

Related: Will Trump’s Trade Policies Disrupt Mexico’s Growing Auto Sector? (Knowledge@Wharton)

Related: Mexico’s President Warns That if Trump Wants to Talk Trade, He’ll Also Have to Talk Security (The Los Angeles Times)

Related: Goldman Sachs Defies Mexican Peso Bears, Forecasts 13% Rally (Bloomberg)

Related: Mexico: 'Against Our Dignity' to Pay for Border Wall (Time Gazette)

Related: A New Business Risk for U.S. Companies: Being Labeled 'Anti-American' by Trump (St. Louis Post-Dispatch)

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