Speculation is swirling about the U.S. and its place in NAFTA with some market observers assessing the possibility of the U.S. withdrawing from the free trade accord. That move is potentially devastating for Mexico’s economy.
“Progress was slow over the weekend. While hundreds of hours of talks are unfolding on issues ranging from car manufacturing to telecommunications, negotiators have punted decisions on the most divisive issues to future rounds,” according to Bloomberg. “The three countries have extended the deadline for the talks to March, when they could be complicated by elections in Mexico and U.S. midterms.”
Even with its recent slump, EWW is up 14% year-to-date, but that is less than half the gain posted by the MSCI Emerging Markets Index. Investors have pulled nearly $937 million from EWW this year.
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