The launch of the North American Free Trade Agreement (Nafta) renegotiation process in August 2017 represents an important opportunity for Mexico, the US and Canada. There is ample room to improve and update a 23-year-old agreement to consolidate North America’s position as one of the most competitive manufacturing powerhouses in the world.
First of all, sectors that were not part of the original agreement can be incorporated, and current provisions for sectors that experienced significant transformations, taking advantage of technological and regulatory changes, need to be modernised. These sectors include digital trade (which has become an increasingly important part of the global economy), energy and telecommunications – which, thanks to Mexico’s structural reforms, are now open to private investment and competition.