Trump threat will drive Mexico trade diversification

Subject

Mexican development banks.

Significance

Mexican foreign trade financing bank Banco de Comercio Exterior de Mexico (Bancomext) has signed several cooperation agreements this year in Asia and Europe, in an effort to diversify trade and investment relationships. The push comes amid great uncertainty in the global economy and increased tensions in the US-Mexico relationship since the election of US President Donald Trump.

Impacts

• Bancomext's efforts to increase export opportunities will especially benefit smaller Mexican firms.
• Foreign financial institutions will welcome opportunities to strengthen access to Latin America’s second-largest economy.
• Strong loan growth by development banks will not threaten commercial banks as the two sectors work together.