Investing in Mexico

The upcoming USMCA review is expected to be a long-term, complex negotiation focusing on supply-chain rules rather than a trade breakup. UBS maintains a constructive view on Mexican assets, anticipating continued regional integration.

Key Takeaways

• 1.USMCA negotiations are expected to extend beyond 2026, creating policy uncertainty that dampens investment but likely preserves regional trade integration.
• 2.Focus on rules of origin and the role of China in North American manufacturing are the primary drivers of the upcoming trade review.
• 3.The firm sees resilience in the Mexican peso and potential opportunities in fixed-income and equities, despite near-term volatility.

Table of Contents

• USMCA review: uncertainty persists, integration endures
• Investing in Mexico
• Beyond trade: security cooperation
• Rules of origin: the central issue
• The China question: transshipment versus integration
• Other issues to watch
• Conclusion
• Investment implications
• Appendix

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial