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JPMorgan on USMCA Dispute Resolution

MEXICO
  • It is still unclear if the US and Canadian governments will agree to the terms Mexican authorities could propose considering the amendments to the Mexican legislation that complicated the relationship in the first place (i.e., the recent changes to the Electricity Industry Law).
  • Until now, the Mexican authorities have offered balanced rhetoric that suggests there are reasons to be somehow optimistic an agreement can be reached.
  • Depending on the outcome of each consultation the economic consequences could vary, but delaying decisions on these matters will most likely continue to hurt investment and business sentiment, potentially having broader negative effects on external accounts and long-term growth.

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