NAFTA Changes Would Impact U.S., Mexican Economies
10/05/2016 - Revisions to, or outright cancellation of, the North American Free Trade Agreement, would negatively impact both the U.S and Mexico, according to CRU steel consultant Thais Terzian.
Terzian, who offered some perspectives on the Mexican steel market during the consultancy’s North American Steel 2016 conference in Chicago on Wednesday, pointed out that 60 percent of Mexico’s GDP is dependent upon the agreement. The country also is the second largest trading partner to the U.S.
From a steel perspective, most of Mexico’s exported steel – about 70 percent – is destined for the U.S. Conversely, Mexico is America’s biggest steel export market, with about 40 percent of America’s steel exports landing in Mexico, she said.
She said that if the US were to cancel the agreement, Mexico and Canada likely would retaliate by imposing tariffs on American goods. And given economic growth of 1 to 2 percent, none of the countries can afford to instigate a North American trade war, she said.
From a steel perspective, most of Mexico’s exported steel – about 70 percent – is destined for the U.S. Conversely, Mexico is America’s biggest steel export market, with about 40 percent of America’s steel exports landing in Mexico, she said.
She said that if the US were to cancel the agreement, Mexico and Canada likely would retaliate by imposing tariffs on American goods. And given economic growth of 1 to 2 percent, none of the countries can afford to instigate a North American trade war, she said.
