The recently elected Mexican president must first address
the tariff war currently raging between the country, the US and
Canada before considering the renegotiation of North American
Free Trade Agreement (Nafta).
Andrés Manuel López Obrador, often abbreviated
to AMLO, who won the election decisively on July 2, ran on a
platform of maintaining economic stability and has indicated a
pragmatic view that the country would be more successful with
the treaty than without it.
However, a succession of tariffs imposed by US President
Donald Trump on both Mexico and Canada have overshadowed the
specifics of Nafta, and have taken precedence. At the end of
May, Trump imposed steel and aluminum tariffs on its two
neighbours, as well as the EU, which had previously been exempt
from the 25% tariff imposed to others on imports. Mexico almost
immediately retaliated with its own tariffs on $3 billion worth
of imports from the...