Where Do Things Stand Between U.S., Mexico on Nafta?

The video discusses the complexities of NAFTA negotiations, highlighting the political pressures in the US and Mexico. It explores the potential impact of US trade policies on global economies, particularly developing markets. The analysis focuses on the Mexican peso, considering scenarios like the border adjustment tax and import tariffs. Despite uncertainties, the peso has performed well post-election, driven by dollar weakness and economic models indicating its undervaluation.

What are the main uncertainties surrounding the negotiations between the US and Mexico regarding NAFTA?

How might the political pressure in Mexico affect the negotiations with the US?

Discuss the implications of a strong US economy on developing countries, particularly in relation to trade restrictions.

What potential impacts could a border adjustment tax have on the Mexican peso?

What factors contribute to the current performance of the Mexican peso in the context of dollar weakness?