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IIG Trade Finance Insights Archive/Past Editions

NAFTA Talks Hit a Wall: What Does the Future Hold for Mexican Trade?
IIG Trade Finance Insights, November 2017

The renegotiation of the North American Free Trade Agreement (NAFTA), one of the pillars of Donald Trump’s presidential campaign, was never going to be easy. Dubbed “the worst deal ever” by the now president of the United States, the 1994 treaty has been repeatedly criticized for displacing U.S. manufacturing jobs to Mexico and hurting the U.S. economy in general.

While the first three rounds of talks went rather smoothly, the latest meeting, which took place in Arlington, Virginia in early October, marked the beginning of significant tensions between the U.S. and its neighbors to the north and south, who consider the Trump administration’s demands to be unreasonable.

As a result, the three countries published a joint statement on October 17 extending the deadline for the conclusion of the renegotiation. “New proposals have created...

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