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 some of the challenges faced by Mexico in the NAFTA negotiations?

• Strong economic growth

• Lack of interest from the US

• Political pressure and social unrest

• Support from other countries

How might the US border adjustment tax affect the dollar?

• It will have no effect

• It will cause the dollar to depreciate

• It will lead to a strong surge in the dollar

• It will stabilize the dollar

What is a potential consequence of a 20% import tariff on Mexico?

• Stability in the Mexican economy

• Increase in Mexican exports

• Depreciation of the Mexican peso

• Appreciation of the Mexican peso

What has been the performance of the Mexican peso since the US election?

• It has underperformed compared to the dollar

• It has outperformed other major currencies

• It has remained stable

• It has depreciated significantly

What factor contributed to the Mexican peso's recent rally?

• Stable global markets

• Dollar weakness

• Strong Mexican economic policies

• Increased US tariffs