NAFTA To USMCA: Limited Economic Impact On Industry

• The USMCA, NAFTA's replacement, will likely be implemented in 2019, leaving preferential trade access intact in North America and modernizing rules for deeper integration, in line with other recent US-led trade agreements.
• Key changes around autos rules of origin are restrictive in nature, reflecting the policy shift towards protectionism in the US under the Trump administration. 
• The alleviation of uncertainty will support investment in the near term, especially in Mexico; over the long run, Fitch expects relatively minimal economic impact on most industries when compared to the status quo.

Source: Fitch