Nafta not a priority for Mexico's AMLO

Author: John Crabb | Published: 11 Jul 2018

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...