Per a Politico report, the United States and Mexico are finalizing a deal on the automotive rules of origin section as part of an effort to revamp the North American Free Trade Agreement. This would mark a significant step forward in renegotiating NAFTA as the autos deal has been one of the primary points of contention in getting a deal done.
Mexican Economy Secretary Ildefonso Guajardo is set to meet with U.S. Trade Representative Robert Lighthizer in Washington on Thursday for another round of ministerial meetings running through Friday, reports Politico.
Settling the autos deal would effectively put a halt to the tit-for-tat tariff wars between the U.S., Canada and Mexico. This could be a boon to Mexico-specific ETFs like the iShares MSCI Mexico Capped ETF (NYSEArca: EWW) and Direxion Dly MSCI Mexico Bull 3X ShsETF (NYSEArca: MEXX).
EWW tracks the investment results of the MSCI Mexico IMI 25/50 Index and is the largest Mexico-focused ETF based on assets. MEXX seeks daily investment results equal to 300% of the daily performance of the MSCI Mexico IMI 25/50 Index.
Both ETFs ended Monday’s trading session in the green with EWW up 0.60% and MEXX up 2.43%. Additionally, EWW is up 13.3% within the past month and with its leverage times three, MEXX is up 44.4%.