Mexico – United States of America Trade Relations: 2016–2018

Gerardo Reyes Guzmán

Abstract


This article aims at analyzing the main features of Donald Trump´s trade policy towards Mexico. Based on the deterioration of the trade conditions reflected through the exchange rate volatility, as well as the main clauses signed in the USMCA, this paper identifies several factors that play a decisive role in determining the new protectionism and nationalism in the US foreign policy. Among others are the US-China trade war, demographic changes, migration and the Mexican export competitiveness. We conclude that Mexico accepted conditions through the USMCA that may have helped to meet Trump´s demands in the short term, but they could lead to a bottleneck in the medium and long term.


Keywords


protectionism, nominal exchange rate, NAFTA, UMSCA, balance of payments

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DOI: http://dx.doi.org/10.17951/al.2019.7.153-174
Date of publication: 2019-12-27 22:11:28
Date of submission: 2019-12-27 18:27:09


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