Mexican politics may prompt protectionist measures

Thursday, January 22, 2015

Subject

Mexico's protectionist measures.

Significance

In a rather low-profile manner, the administration has adopted some protectionist measures that mark a departure from the traditional free market orientation followed by Mexico since the late 1980s. The measures are mostly geared towards illegal or unfair trade practices and favour certain specific sectors. The motives behind them are, possibly, more political than economic.

Impacts

  • The private sector will welcome further protectionist measures, despite the relatively minor economic impact they may have.
  • Retaliation from other countries may not take place as protectionist actions are limited in their scope.
  • Economic integration with other countries -- notably the NAFTA and the Pacific Alliance countries -- is set to continue.
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