New era of free trade leaves Mexico more isolated

© Mikeaubry

Bloomberg has published an interesting analysis of the ‘new Nafta’, calling it a “grim” combination for Mexicans who “already felt too dependent on the US”. The new pact isolates the three-country North America bloc further, diminishing Asia’s role in supply chains to the region. But it also greatly restricts Mexico’s ability to diversify its customer base, and makes it increasingly dependent on its powerful northern neighbour.