In spite of an apparent truce reached in Washington today, US-China trade tensions are likely to remain volatile. Manufacturers are actively reconsidering their supply chains, and as logistics costs rise, Mexico seems a likely beneficiary of these shifts. Challenges remain however, and the AMLO government is considering new taxation policies that would make both existing and new investment more expensive for multinational corporations. Could these changes counterbalance the benefits of the upcoming United States-Mexico-Canada Agreement (USMCA)?
Check out our report titled Mexico 2020- Proposed Tax Reform: Impacts on Investors & the Domestic Economy
Questions for our expert panelists:
1) Is Mexico a realistic alternative to China's manufacturing sector?
2) What are the prospects for the USMCA, given Congress's focus on the political cycle?
3) Infrastructure and energy are exempted from the new taxes. Would a USMC energy bloc be self-sufficent?
4) Any thoughts on the dollar/peso exchange rate, inflation (now at 3.5%) and expected GDP growth in Mexico?
5) What else could get in Mexico's way?