Social mobility improvements to come slowly in Mexico

Subject Social mobility in Mexico. Significance Despite recent reductions in inequality and the growth of the middle class, Mexican society is one of the most unequal in Latin America. Economic and political inequalities have also contributed to low intergenerational social mobility, with those born poor tending to remain so. Impacts Inequality and lack of opportunity for the young will exacerbate crime rates. Talks on the North American Free Trade Agreement (NAFTA) will highlight the issue of Mexico's low minimum wage. State failings on inequality will aid leftist presidential frontrunner Andres Manuel Lopez Obrador ahead of the 2018 election.

Subject Mexico-EU trade talks Significance Talks on modernising the Mexico-EU Free Trade Agreement (FTA) have gained urgency since the election of US President Donald Trump as the prospect of an end to free trade within North America forces Mexican officials to get serious about diversifying relations. While negotiators hope to seal a new EU deal by the end of the year, many issues are yet to be addressed and renegotiation of the North American Free Trade Agreement (NAFTA) is absorbing bureaucratic capacity. Impacts Anti-American sentiment stemming from Washington’s hostility could favour European firms and investors in Mexico. The rush to conclude agreements risks bad deals and political blowback from Mexico’s opposition. Transportation costs and connectivity will ultimately matter more for Mexican diversification than already low tariffs.


Subject Prospects for Mexico and Central America to end-2017. Significance The economies of Mexico and Central America will maintain a ‘business as usual’ stance until renegotiation of the North American Free Trade Agreement (NAFTA) formally starts later in the year. Growth momentum in the region is therefore likely to be maintained for the rest of 2017. Nonetheless, threats to trade and migration links with the United States, and to remittance income, will drive uncertainty.


Significance The statement is the latest in a string of similar announcements by companies fearful of obstacles to free trade being put in place between Mexico and the United States. Trump has consistently engaged in protectionist, anti-Mexican rhetoric, pressuring US firms to abandon planned investments in Mexico, demanding a renegotiation of the North American Free Trade Agreement (NAFTA), and threatening to impose a 20% border tax or selective tariffs on Mexican exports. Impacts Mexico will see diminished foreign direct investment (FDI) in 2017 due to uncertainty over the future of NAFTA. A moderate-sized hit to Mexican exports could knock around 0.5 percentage points off growth, possibly contributing to a recession. In the medium term, China could take advantage of worsening US-Mexico relations to deepen economic and political ties with Mexico.


Author(s):  
J. Anthony VanDuzer

SummaryRecently, there has been a proliferation of international agreements imposing minimum standards on states in respect of their treatment of foreign investors and allowing investors to initiate dispute settlement proceedings where a state violates these standards. Of greatest significance to Canada is Chapter 11 of the North American Free Trade Agreement, which provides both standards for state behaviour and the right to initiate binding arbitration. Since 1996, four cases have been brought under Chapter 11. This note describes the Chapter 11 process and suggests some of the issues that may arise as it is increasingly resorted to by investors.


1997 ◽  
Vol 91 (2) ◽  
pp. 324-338 ◽  
Author(s):  
Janet M. Box-Steffensmeier ◽  
Laura W. Arnold ◽  
Christopher J. W. Zorn

A critical element of decision making is the timing of choices political actors make; often when a decision is made is as critical as the decision itself. We posit a dynamic model of strategic position announcement based on signaling theories of legislative politics. We suggest that members who receive clear signals from constituents, interest groups, and policy leaders will announce their positions earlier. Those with conflicting signals will seek more information, delaying their announcement. We test several expectations by examining data on when members of the House of Representatives announced their positions on the North American Free Trade Agreement. We also contrast the timing model with a vote model, and find that there are meaningful differences between the factors influencing the timing of position announcements and vote choice. Our research allows analysts to interpret the process leading up to the House action and the end state of that process.


Sign in / Sign up

Export Citation Format

Share Document